internal revenue service

Taxation 101: Where Do Taxes Go?

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Taxes are something that many people think are useless expenses wasted on the government when in fact it is something that helps to keep society in order. It is important to know that taxes keep many public utilities running for everyone to benefit from while keeping up many administrative operations that we depend on for peace. But it is easy to forget that these payments are beneficial for us with the continuous increase in taxation for all community members.

Especially for business owners that are already managing many expenses in their venture, they are always looking for ways to cut business costs by looking for virtual solutions, making efficient marketing efforts, and hiring cost segregation providers. But for other citizens, there are many ways to protect income from taxes without breaking the law.

To help us remember the importance of paying our taxes, here are some factions of the public that utilize these payments for everyone’s welfare:


The public education system is one of the biggest receivers of the benefits from the collected taxes. Public schools provide free education to students of different age groups. This system makes education more accessible to poor communities and struggling families that wouldn’t otherwise get to send their children to school.

The taxes collected from us pay for the educators teaching the students, the facilities used inside the classrooms, and the maintenance needed to keep the schools running. This is one of the most worthy institutions that receive funds from taxes because education, after all, is the key to opening many opportunities for young people in the future.


Geratric nurse monitoring blood sugar of senior woman with diabetes

The healthcare system is another recipient of funds from taxes. Our money is then used to save thousands of lives every year by making the needed resources available when needed. Our payments make it possible for the experts to do their medical research, conduct their surveys and experiments, and ultimately uphold the importance of people’s health.

Even when we find that we are paying for our own medical treatments from our own pockets with insurance, it should be noted that healthcare funds from taxes make it easier and more efficient for us by “prepaying” for all equipment and procedures required even before we see the need for them.

Public Infrastructures

Public infrastructures also benefit from the taxes that we pay. The government allocates part of these taxes to create many projects focused on improving most of the things we see in public. From roads, highways, and transportation to electricity, communications, and protection of the environment, our taxes make the world a better place without much effort on our part. And these are things that we all mostly benefit from anyways since we wouldn’t want traffic from broken roads, late transportation from public transit, failing electric connections, and completely unmanaged surroundings.

But we should remember that taxes and government funds are never enough to maintain these things. As consumers, we contribute to the destruction of these public properties, so we must do our part to keep everything in good condition for everybody’s sake.

Government Processes

A crucial part of our society is the government ruling over the country to keep everything in its proper place. As we all know, the government stands as the point of leadership, the guardian of the country’s security, the supervisor of the nation’s economy, and the upholder of the social justice system. All of these tasks cost a lot of money so our taxes help to pay for the best execution of these activities. In the end, we are all paying for the country’s best interests while keeping ourselves safe from most threats that plague the world in the present.

Taxes are collected to put the public’s needs at the forefront. But the system is far from perfect, not only because of the specifics and complexity of the code but also because of the people enforcing it. There are many problems with how the system decides on who has to pay and how much they should pay, which can make it unfair for low-income communities in contrast to larger companies who have the means to lessen the taxes that they pay. And it is even more unfair when the people in the government implementing this rule are corrupt and dishonest, pushing the limits of the law to gain more advantage for the rich.

But because of this, we should all strive to be more informed about the subject matter and find the right tips to avoid being taken advantage of by the people enforcing it. With this, let us continue being vigilant citizens while still abiding by the rules and regulations set around us.

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