Taxes - How the Government Spends Your Tax Dollars

The main purpose of taxes is to finance governmental activities. We've come to expect the government to provide us with certain services that you will explore in this topic. Freedom isn't free, and neither are roads, F-18s, aircraft carriers, parks, or libraries.  These items are paid for by the taxes that are collected by your local, state, and federal governments. In addition to the income taxes which are filed each year, employers, merchants, and service providers also collect taxes for the government's use.

If you have ever had to pay taxes, you may have had the following questions:

• Why do I have to pay taxes?
• What exactly do my tax dollars buy?

In this topic, you'll examine how tax money is spent.

Essential Question

• How does the government acquire and spend money?