Taxes-How Does The Government Spend Money?

The federal government spends the collected tax money on various different things including transportation, education, military and medicare. Below is a chart that shows 2006 estimates of how the Federeal Governemtn spends each tax dollar. The greater part of the tax money collected goes towards social security which is predicted to be diminished within the next 50 years. Next, is National Defense which gets the second greatest amount of American's tax dollars. This money goes towards activities such as the war in Iraq. It is a shame how opponents to the war have no choice but to pay their taxes and indirectly fund and support the war. Then comes income security, medicare, health, net interest on debt, education and so on and so forth.

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On the other hand, the New York State government spends its money on other things such as education, economic development, Medicaid and debt. It is easy to see that there is not a big difference between how NYS spends their tax money and how the federal government spends their money.