8 April 2016
The Different Worlds of Tax
The United States of America is a country well know as “the land of opportunity.” In many aspects this is very true, almost anything can be sought out and accomplished. Of course, the phrase “nothing is ever truly free” goes hand in hand with that. Taxes are the evidence that back up that statement, no matter what you do or buy or sell here the government will always be getting its piece to. We all get taxed for making purchases, for owning a home, for having a business, and even for working to make money. As you can imagine no one ever wants to pay taxes but the taxes collected are used to continue many different programs in our country. Many people don’t…show more content… For example, for the tax year 2013, there were 7 marginal income tax brackets for each filing status: 10%, 15%, 25 %, 28 %, 33 %, 35 %, and 39.6%. The amount of taxable income that you earn determines which tax bracket(s) you fall into” (“Understanding How Income Taxes work”). The rest comes from corporate tax, payroll tax, and from “other tax” and “excise tax” (“Understanding How Income Taxes work”). It is clear that the tax system fairly considers the amount of income a person makes and determines how much of it show be taxable.
The money collected from tax revenue goes to funding necessary programs in our country. All the taxes collected are put into three different sections. Mandatory spending is first section, it uses the most amount of our taxes and can use up to 55% percent of our taxes annually. Mandatory spending is made up of a few different programs that assist many Americans like social security, Medicare and Medicaid, and security programs like food stamps and retirement programs (“The Numbers: How does the federal government spend its money?”). The next section is Discretionary spending and it is a portion of the budget that is decided by Congress through the annual appropriations process each year. (“Federal Spending: Where does the money go?”). Under this section, our taxes are used to fund the