Where does tax money go three main areas )?
Basically, there are three main categories that your tax money pays for: Interest on government debt (8%) Mandatory spending, also known as entitlement spending, which is not subject to regular budget review (61%)
What are the 3 biggest federal expenses?
Mandatory and Discretionary Spending The U.S. Treasury divides all federal spending into three groups: mandatory spending, discretionary spending and interest on debt.
What is the US governments biggest expense?
Social Security Social Security will be the biggest expense, budgeted at $1.196 trillion. Its followed by Medicare at $766 billion and Medicaid at $571 billion. Social Security costs are currently 100% covered by payroll taxes and interest on investments.
Who is required to pay tax?
Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.