Some don’t really enjoy handing a small portion of our hard-earned money to the government officials. But it’s for the good of the country. This is due to the fact that the government needs to collect tax from citizens and businesses. The tax collected by the government is spent on military, infrastructure, and other services and program. These are some of the reasons why the government needs to collect tax.
Build a strong Defense and Security –Government officials spend a huge amount on defense and security. Defense and security play a huge role in keeping a country safe against war and terrorism. So, the governments tend to spend more in the form of federal budget. However, the amount of money spent on defense and security changes every year.
Health Programs – There are various healthcare programs such as Medicare, Medicaid and Children’s health Insurance Program the government spends on. All these healthcare programs are beneficial to the public in one way or the other.
National Debt Interest – Every country owes some money to one or many countries. About 6% of the federal budget is spent by the government in paying off due amounts.
Social Security – Social Security Systems represent retirement and survivor benefits of the old as well as disabled people. The government spends around 23% of the federal budget and is considered as mandatory.
Safety Net Programs – The safety net programs include unemployment insurance, low-income housing assistance, food stamps and various other programs. The government pays around 14% from the federal budget for such programs.
There are many different taxes like GST, Sales Tax and partnership tax, any Bankstowns agency will tell you that it is beneficial.