Where Do Your Taxes Go?

November 8, 2019

Everyone has to pay taxes. However, have you ever wondered where your tax dollars really go? You can speak with Encino tax consultants for a more detailed breakdown, but in general, tax revenue goes to finance public programs, which can include building roads, financing schools and paying government workers. Here are some of the major programs financed by tax dollars.

Defense and International Security Assistance

The government spends hundreds of billions of dollars financing the military and other international activities. Over the last few years, this has primarily been concentrated in supporting operations in Afghanistan and other countries in the Middle East.

Medicaid and Medicare

Your Encino tax advisors will tell you all about how taxes pay for health insurance programs, including Medicaid, Medicare and the Children’s Health Insurance Program. These programs provide insurance coverage for millions of Americans. Combined, CHIP and Medicaid provide long-term care for roughly 69 million low-income children, people with disabilities and the elderly.

Social Security

Another safety net to help the most vulnerable is the federal government’s Social Security program. This provides monthly retirement benefits to millions of retirees. On average, each person receives roughly $1,400 a month. Social Security also provides benefits to the children and spouses of retired workers, including children and spouses of deceased workers.

Safety Net Programs

A small portion of the federal budget goes toward safety net programs to help low- and moderate-income families. The most well-known of these is the food stamp program, otherwise known as SNAP, but it also goes toward low-income housing assistance and aid in meeting home energy bills. With these programs, millions of Americans are able to stay out of poverty.

Now that you know where your taxes go, it is time to start planning for next year’s tax returns. Find Los Angeles tax preparation services near you to help so that you pay as much as you need to.