According to the IRS, the average family paid $15,322 in federal income taxes in 2018. These taxes are used to fund national programs, law enforcement, and interest on the national debt. Tax revenue is the primary revenue source for the budget and helps the government continue important federal programs such as health, education, defense and security, interest on national debts, technology, infrastructures, transportation, and more.
Major Health Programs
Almost two-thirds of the federal health budget is devoted to health programs such as general health, children’s health insurance (CHIP), Medicare, and Medicaid. These are your taxes that help the government to support these health programs every year. For example, a couple gets Medicare after retirement, which is three times their contributions in tax. In 2019, almost $651 went to Medicare to provide health facilities to people over the age of 65 years.
In 2017, the government fixed almost 26% of the budget for health programs, while in 2019, this fund was increased up to 28 % of the budget.
Social Security
A part of your taxes is dedicated to the social security fund that is a mandatory part of the budget. Every year, the federal government provides social security funds to families of retired, deceased, and incapacitated workers. A typical couple receives security funds 13% higher than they add every year in taxes. In 2017, the United States government provided a $945 billion social security fund, while in 2019, almost 23% of the budget ($1 trillion) was fixed for social security.
Education Programs
Every year a part of your taxes is used to fund elementary and secondary education as well as new educational Initiatives. The government spends to support low-income schools, special education institutions and to assist college students financially.
According to the National Center for Education Statistics, U.S. spent more than $700 billion on education programs in 2017.
Defense and Security
Defense and Security spending is a significant part of the federal budget. Every year, your taxes pay the cost of military and defense programs. The defense budget helps the military cover all expenses for research and development of new technologies and overseas military operations. During the fiscal year 2017, the federal government allocated 15% of the budget to defense and national security, while in 2019, this fund was increased to 16% ($697 billion)of budget.
Military Veterans
Every year, the government allocates a portion of the budget for military veterans. Currently, there are more than 22 million veterans in the United States that are provided with funds by the federal government. Your taxes help the government to provide facilities such as health benefits, pensions, and educational programs, etc. to these military veterans.
Interest on the National Debt
Your taxes are used by the government to pay interest on national debts every year. This debt changes every year. In 2017, the government paid 6.1% of the budget on national debts, whilst in the year 2019, the national deficit increased to $16.8 trillion, and 8% of the budget was allocated by the government to pay for it. In 2019, the government collected $26,677 per household while spending $35,148 per household through the budget, resulting in a debt of $8,471 per household.
Agriculture and Food Programs
The U.S. government aids many agricultural and food programs every year to improve the production, supply, and distribution of food across the country. Your income taxes support these programs, such as Supplemental Nutrition Assistance Program and the Federal Crop Insurance program.
Judicial System
Every year, the government pays federal attorneys, judicial bodies, prisons, and law enforcement programs from your income taxes. In the fiscal year 2018, the judiciary budget was almost $7.0 billion while the budget was increased by 3.2% in 2019.
Anti-Poverty Programs
Your income taxes play an essential role in helping needy families throughout the United States. In 2019, $6,483 per household was allocated for Anti-poverty programs such as Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), and Food stamps, etc. reduce poverty in the U.S.
International Affairs
A significant portion of the budget is used to finance International affairs, including foreign economics, American embassies, and organizations, including the United Nations. All these affairs could only sustain using the taxes collected from the public.
