Americans regularly pay their taxes but often wonder where these taxes are spent. This curiosity sometimes leads to misconceptions by a majority, as they tend to underestimate the taxes that government spends on critical parts of Federal Government’s Budget.
Here are some of the perceptions of people about the tax spending.
The common man’s estimate
The majority of the citizens think that federal programs enjoy much more that they actually do.
- Foreign aid: People wrongly estimate that spending on foreign aid is about 10 percent but it is actually less than one percent.
- The media campaigns budget: Every government has a media budget but in America masses think that governments spend 5 percent on marketing, however, the actual figures show that it is nearly one-tenth of one percent
- Government workers pensions: Americans estimate that 10 percent of the revenue is spent on pensions and benefits, this is also wrong, the actual figure is merely 3.5 percent.
What Mandatory spending does the government make out of your tax money?
Mandatory spending encompasses around programs that are launched by governments which are of course created by the congress and has certain criteria’s. People who fall in these criteria’s only get the benefit.
Mandatory spending normally consists of programs like social security, medical care, vet benefits, food stamps along with interests on national debts. It covers almost two third of the total federal budget.
My Tax Help MD is one of the best platforms where you can get all kinds of IRS tax help and settlement services. Having a team of professional tax consultants, we provide diverse IRS tax debt relief service. We can help you in file delinquent tax returns, audit representation, tax lien, payroll issues, and plenty of other tax concerns.