Medicare and Social Security

• As of 2007, the federal government spent about 38 percent of its budget on retirement-related programs to support the senior population.
  
  

Defense

• Approximately 25 percent of your tax dollars pay for national defense and the enhancement of foreign relations.
  
  

Community Development

• The federal government relies on income taxes to support programs in education, science and environment preservation. It also spends tax dollars on career training and transportation.
  
  

Social Programs

• Income taxes support housing assistance to low-income populations, the food-stamp program, Medicaid and public-health programs.
  
  

Interest on Government Loans

• When the government cannot fund the national budget with income taxes alone, it needs to borrow money to make up for the deficit. Federal taxes pay the interest incurred on those loans.