What do Our Taxes Pay For?

What Do Our Taxes Pay For?

At National Tax Office, we believe that the best place to start when opening up your own tax business is to educate yourself on exactly what taxes are, why we pay them, and what they do for us. What good is starting a reputable tax preparation franchise if you can’t tell your customers what their tax dollars pay for? Read on to learn why it’s so important that we pay our taxes every year.

National Defense: Protecting The Country With Your Tax Dollars

Whether or not you’re a member of the military, you’re still helping to protect the country with your tax dollars. Roughly 25% of all income taxes are used to support national defense. Most of that percentage goes towards weapons, supplies, development, and construction, but a portion of it is also used for benefits and salaries for members of the armed services.

Taxes Provide Income Security

Approximately 17 percent of your tax dollars are spent on individuals who are in need, which includes nutritional and food assistance, retirement benefits for federal employees, and Supplemental Security Income.

Tax Money Keeps The Country Healthy

An estimated 23 percent of US tax dollars are used for health care programs. The largest portion is split between Medicaid and Medicare, but the money is also used for health safety, food research, disease control, and public health services. One thing to keep in mind is that the dedicated taxes that workers pay for Medicare out of their paychecks is not included with this amount.

Income Taxes Help To Pay Off Interest

A hefty amount of interest is added to the national debt every year. Even if interest rates are low, roughly eight percent of your income taxes are funneled to yearly interest on the national debt.

Taking Care Of Our Veterans

Nearly five percent of your tax dollars is used for a variety of benefits for veterans. Housing support and income make up almost half of the spending, and health care expenditures roughly makes up the other half. Anything that’s left over is used for training, education, and other benefits for veterans.

If you would like more information about where your tax dollars go, or if you’re interested in learning about tax business marketing or starting a tax preparation franchise, get in touch with a National Tax Office representative today.