Why Do We Pay Taxes in USA

Services You Receive By Paying Taxes

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According to the new list issued by the Government of the United States, many new facilitation programs have been included in different categories of tax spending. United States is a big country and an attractive destination for immigrants as well. As a social responsibility, we also provide homage and refuge to immigrants from the third world countries. Therefore, the government has introduced numerous programs not only to overcome the housing shortage but also to keep running the country in its best forms. The programs also include rehabilitation, education, medicare, and employment programs not only for the nationals but also for the immigrants.

Primarily, the US tax spending system is divided into the following categories.

Military Services

Each year, millions of American people apply for admission in the US military. The US military is not only serving to defend the nation but it has also taken the social responsibility of eradicating terrorism from the world. This is why, our military not only work in collaboration with established economies but our soldiers also fight in tough areas and unsecure countries.

As an estimate, almost 43% of the tax budget is used for fulfilling the military services. these include border protection, fuel and ammunition expenses, salaries and benefits to veterans, war expenses, and other military expenses.

Answering why do we pay taxes, it is quite understandable that a huge portion of your paid taxes is used for protecting the citizens of America.

Healthcare Services

America is one of the first countries to introduce healthcare services for her citizens. Apart from healthcare services, the government also spends money on research institutions working days and nights to find cure of fatal diseases. Almost 22.5% of your federal income tax is used for fulfilling the healthcare services. Currently, Medicare and Medicaid are two primary programs entitled under mandatory spending for providing health services to Americans.

The healthcare programs also include food safety programs and the salaries of FDA. You may be wondering that why do we pay taxes for healthcare when some portion is already deducted from your salaries. Here is the explanation. The amount deducted from your salary is solely used for your personal and your family's medical services whereas the amount consumed from the taxes is used for national healthcare services in order to provide equal healthcare services to all American citizens. These also include the homeless people and less privileged people. Again, you are doing a social service by paying taxes and abiding by the law.

National Debt

The American government takes out debt at times to serve the needs of American citizens. Fulfilling the responsibility of paying back debt, the government takes out almost 10% of mandatory spending for returning the national debt and reducing the interest.

Social and Income Securities

You might be already aware of the concept of social or income securities. In simpler terms, income and social securities refer to national financial assistance plans for the American citizens. These include retirement plans, housing plans, old age nutrition and nursing plans, securities to the family after death of the head, and many such programs.

For example, if you already have stored your savings in IRA accounts and you want to invest after retirement but the savings are insufficient then you can take help from any of the business assistance programs designed by the US government. It is like a loan which you pay off after earning from your business. Almost 17% of the budget is used for social and income securities.

Tax relief, childcare programs, and tax returns are also included in social and income securities. For further understanding that why do we pay taxes, we will have a look at the following categories and sub-categories as well.

Law Enforcement

The crime rate is increasing in many American states. The phenomenon has made people move from unsecure states to securer ones, creating an imbalance in housing, education, and employment. The Government of United States is striving hard to establish peace inside and outside the nation. This is why, the government spends almost 10% of its budget on law enforcement including on police, law establishment, law committees, purchasing ammunition and fuel, courts, salaries of judges, and other law enforcement services, and exactly why we pay taxes.

Education

Apart from free education and awareness programs all over the US, the government of United States has also defined sub-categories in the education category for budget spending. These include science, space and technology, free workshops and education programs, international scholarship programs for students from third world countries, research and studies about energy, environment and natural resources, and establishment of research institutions all over the country. In space and technology sub-category, around 50% of the budget of this category is assigned to NASA. Now you would have a better idea about why do we pay taxes.

Construction

This category includes programs for constructing highways, roads, amusement parks, theme parks, houses, and important national buildings. Construction budget also includes budget for restoring and maintaining the heritage and tourist sites. After housing bubble, the government has increased construction budget individually for different states.

Apart from these, there are many sub-categories and main categories included in the budget. The President of America is responsible for announcing the major categories and new programs in the budget after every fiscal year.

It is completely understandable to ask about the money you earn that where does it go. Now if someone ask you why do we pay taxes, you can safely tell them that we pay taxes to keep ourselves, our families, our properties, our earnings, and our country safe, more powerful, and prospering.



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