Thomas Meshak Thomas Mrs. Lauber English IV

Thomas

Meshak Thomas

Mrs. Lauber

English IV

Government Spending and its Influence on Everyday Lives

What is one of the greatest motivators known to mankind? Money! Simply stated, money is and will always one of the major reasons why human beings choose to do what they do. The way that the government chooses to spend tax dollars has always been debated by the citizens. Government spending becomes even more controversial when it comes to moneys spent directly on the people. Where does the government's money come from? Where does it go, to whom, and in what denominations? The money that is taken from the citizen is supposed to be used for keeping the country going. It improves the future of its citizens in terms of education, health care, national security, and much more. Money and the government is becoming a greater cause for concern in the United States as the economy continues to be an issue. Since this has become the case, people of the country have come to realize exactly how important money is and, by extension, what it means they can or cannot have. When it comes down to the direct point, money permeates all aspects of human existence and heavily influences people's everyday lives.

According to the article "Where Does the Money Come From? - National Priorities Project," the fiscal year 2013 is projected to grant the government some $2.9 trillion from tax money and other income sources (Where ¶2). The three major sources where the money comes from are income taxes paid by individuals, which makes up the majority of the federal income with 47% of the moneys earned by the government, payroll taxes paid by workers and employers which make up 33%, and corporate income taxes paid by businesses which make up the other 12% of the funds (Where ¶2). Some taxes are used to pay for the government in general, while the other funds are designated for specific government programs (Where ¶1). There are many different kinds of taxes and by their combination, the federal government raises trillions of dollars in tax each year (Where ¶1). While there are more taxes which are not specified such as custom duties and more, they all are still paid into the treasury. Income and corporate taxes are considered to be federal funds, while payroll taxes become trust funds, and federal funds are categorized as general revenues. This means that the majority of trust funds are used to pay for comprehensive Social Security and Medicare programs which take care of the needs of the disabled and the elderly (Where ¶3). The income tax system is designed to be in increments. It progresses so that the wealthy have to pay a higher percentage of their annual earnings than the middle or low income earners (Where ¶5). The reasonable assumption is that the wealthy can more easily afford to pay higher taxes because they have more extra cash while middle and lower class families will have more hardship if they have to pay more money. Income taxes existed in some form briefly in the United States during the American Civil War but it wasn't until 1913, with the ratification of the XVI Amendment to the Constitution, that income taxes became a permanent part of American life (Where ¶4). Now income taxes are an annual occurrence and everyone is supposed to pay them if they can although many people do not because they do not earn enough money. Each year people are also asked to file tax returns to make sure that they have paid both the federal and state governments all the moneys that they are owed. Often though, people wind up getting money back from the government because of deductions and other credits.