Tax is money that is imposed by a certain government, or state to an individual. Taxes are collected to these people so that there is a fund that will help on the projects of the government to its citizen. The collection of tax is not voluntary, but is enforced so that the projects by the government will be made. Where taxes came from There are many categories where the federal government gets the taxes that will be used on the programs of the country. One category is the Capital gains tax. Capital gain tax is collected on the profit of selling capital assets. This can be accounted as the income tax in selling the capital asset.
Another is the taxes coming from corporations and is termed as corporation taxes. The tax is charged on the income of the company. It is determine when the gross income is subtracted to the total expenses and multiplying the difference to the tax rate. Excises are another form of tax that is collected from different companies. It is different from other taxes in such a way that the main concern in the collection of the taxes is the quantity of the product and not the quality. Examples of this tax are the alcohol, and pornography tax. High amount is being collected from this business because on the structure of the business.
The tax collected from these businesses is more commonly known as sin taxes. The most common form of tax is the income tax. The tax that is collected from employees, corporations and other legal identities is what income tax makes up. 1(Development) Purposes of Tax In the United States, the federal government allocates its tax collection to different programs and departments of the government institutes. To further understand where the money collected from each household goes, the breakdown of expenses must be presented. In 2004, the federal government of United States estimated a total of $21, 671 for each household.
The breakdown of the proposed funds for each household starts from the Social security and Medicare programs. It has a total of $ 7,165. The tax coming from the citizen of the country allocates about 15% of the total tax collected in these programs. This is one of the most priorities of the government, the social security as well the health security of its citizen. The money will be used on programs pertaining to the security of a people on the society and the medical benefits for a sick person. The second program where the tax collected is where going is on the defense department. It has a $4,240 budget from each tax of household.
There was a going debate because on the amount of funds that was allocated in this program. In 1990, a budget cut on this program was made but the 911 attacks trigger the increase in the defense budget. The third program that utilizes the money of the government is the low-income programs. A total of $ 3,479 was estimated on this program. The money is utilized mainly on the programs that provide medical health care services for poor families. Other low-income programs are; food stamps, housing and child care subsidies, Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF) and low income tax credits.
Because the country has government debt, this is another breakdown where the tax money is going. A total of $1,460 for each household is being collected to pay the debt of the government. Because the interest rate from the debts of the country is increasing, this as well increases the tax collection from each household. Another spending of the government is the retirement benefits of its citizen employees, usually from the military department. The total tax that is used in the spending for the benefit is $835 from each household. The health research and regulation comprise about $619 of budget of the government.
The National Institute of Health is the major department of the federal government that is responsible in conducting many researches concerning on the health problems. Other parts of these programs are Food and Drug Administration and many grant programs for health providers. The budget for the education program is the next priority. A budget of $583 is allocated in this program. An increase in the said program was made because on the act-No Child Left Behind, an act that protects the youth of United States from the problems in going to schools by providing the child the right kind and sufficient education that is a right of a child.
Part of the program also is the development of the education facilities of low-income schools, financial aid and special education like for deaf children. Veteran’s benefit is another program where the taxes go. A total of $565 is utilized by the federal government in providing income and health assistance to veterans. In 2001, 34% of the total funds of the government were used in this program. The unemployed citizens were also given certain benefits like financial assistance. The government allots a $451 for the year of 2004 for these people.
The budget for this program depends on the employment rate of the country. If people are mostly employed, the budget decreases and in contrast increase when there is a high number of unemployed people. Construction and development of the roads, highways and mass transits are also part of the breakdown of expenses. $400 is allocated in these programs. Justice administration includes the hiring of the government to public attorneys as well the management and maintenance of prison system. The government spends $389 on this program on 2004. The international affairs program is the last priority of the government.
United States spends a total of $320 for this purpose. Parts of this program are foreign economic and military assistance, management and maintenance of the different US embassies from different countries outside US and contribution to UN. Controversies on the allocation of Tax Dollars There are many controversies concerning on the allocation of the government to the tax dollars. Some of the controversies are the rising issues on corruption. There are many instances when a government employee uses the funds in its personal needs that are allocated in a certain government project.
Example is when a construction engineer that has a project in road construction. Part of the funds sometimes is not going to the project but on to the hands of the construction engineer aside from the salary for his job. This is a corruption on the side of the engineer because of the stealing on the funds of the project. Its must bear in mind that this act is unethical on the part of the engineer. Another issues pertaining on the allocation of tax dollars is the allocation of the funds on not so important projects of the US government.
There are major programs and project that is prioritize by the government. But some of these programs is not much needed by the citizen of the country. In these programs also were the funds allocated is questionable. The tax dollars in this case are not well spent for the major benefits of the citizen of a country. There are many cases regarding on the misuse of the tax dollars of a company. One is the issue on House Speaker Dennis Hastert stole an estimated $ 1. 5 million when he made a government project of building a federal earmark. In this project, he sells part of the land to a real estate company.
This was a controversy on how government employees usually one who has high position uses their positions on the government in making some unethical acts. (Progress) It must be remember that there are two major roles the government must do in connention to tax dollars. First is the collection of tax dollars from its citizen and lastly is the proper allocation of these funds for the development and benefits to the citizen of a country. Responsible allocation must be done by the government so that the welfare of its citizen is properly managed.