Where Are My Taxes Going?!?

Working for that paycheck isn’t easy. And when you FINALLY get a paycheck for all of the work you’ve put in… you might notice some money missing. Missing because of something called “Federal Income Tax," “Social Security Tax," “Medicare Income Tax” or “MI State Income Tax.”

Well....

WHAT ARE THESE THINGS CALLED TAXES AND WHAT ARE THEY DOING WITH MY MONEY?!

Believe me – I have asked myself that question a couple of times. And I have found some answers that are worth sharing with you, that way you don’t feel like your money is disappearing for no reason at all.

For starters, let’s cover EXACTLY what taxes are. Taxes are fees the government requires its citizens to pay in order to live in the state or country. These taxes are then used to help support the country, the community and the people within it.

Here’s a chart I found on National Priorities Project showing EXACTLY where your Federal Income tax dollar went:

 

federal income tax chart.jpg

And as for your State Taxes, in an interview I found on Center on Budget and Policy Priorities, Nick Johnson,  the Director of the Center’s State Fiscal Project said “About 80% of all state spending is in education, health care, public safety, and transportation. And of those, the largest are education and health care.” 

In other words, our taxes go to help support our country and our state. Without paying taxes, our country wouldn’t have the funds to run itself! Taxes also go to help pave the roads we drive on, educate students, and to assist those in need. So when you notice some of your paycheck missing because of that thing called "taxes," don’t feel so bad! You’re helping out A LOT for our country and not only are you helping for everyone else, you're also helping for yourself! As a group where everyone contributes, we are strong.

 

Until next time,

Vicky :)