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How are federal taxes collected

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At the federal level, the majority of your tax dollars are collected to fund national defense. This means paying for the operations that support any current wars, as well as troop salaries, research and development and maintenance.

Social Security

When it comes to where the largest percentage of your tax dollars go, Social Security runs a close second to defense. Specifically, your tax dollars are collected to fund the Social Security program, which pays retirement, survivor and disability benefits to those Americans who qualify.

Other Health Programs

The tax dollars collected by the government also go to fund other health-related programs such as Medicare, Medicaid and Children's Health Insurance Program (CHIP). Most of this money goes into Medicare, which pays for medical care of the elderly as well as the disabled. Medicaid and CHIP are also funded through state taxes.

Social Assistance


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Category: Taxes

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