Generally, people don’t like paying taxes. When their paycheck comes, they see that a large amount of money is taken out and they wonder where it’s all going. And then during tax time, they might get frustrated because they come to find out they owe the government even more money.
However, as annoying as paying taxes can be, it also ensures that roads are built, infrastructure is maintained, and citizens have access to the critical services they need to survive. Without taxes, society could potentially suffer.
By learning about why we pay taxes, you may begin to appreciate everything they do for you and your fellow taxpayers.
They Fund Federal Programs
When you pay taxes, you’re sending some money to your state and local government, and some to your federal government. In terms of federal taxes, you’re funding federal programs such as Social Security, public health insurance like Medicaid and Medicare, the U.S. military, safety net programs like school meals and Supplemental Security Income, and interest on government debt. Additionally, your federal tax dollars could be put towards benefits for veterans and federal retirees, education, transportation, international affairs, and science and medical research.
They Fund State and Local Programs
When you pay state and local taxes, you’re funding programs in your area. Tax revenue pays for elementary and secondary education, hospitals, the police, the fire department, welfare programs, roads, higher education, libraries, and corrections.
Now that you know what kinds of benefits you and other taxpayers receive, here is some information on how our tax system was set up.