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Federal Taxes
Federal Taxes
When the states first banded together, one of their goals was to create a Federal government that would defend our borders against foreign threats. In other words, they didn't want the states to be forced to defend themselves individually. They realized that we all share common borders, and we should all share in our common defense.
The Federal Government's responsibility has grown since then. Today, it includes things like helping the disabled and elderly, as well as paying for F.B.I. agents, Medicare doctors, Federal judges, national park rangers, medical research, air traffic controllers-but I'm getting ahead of myself.
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Did You Know?
  • The first states were sovereign powers, but they chose to give up some power to the Federal Government for the collective good.
  • It took two tries to establish the Federal Government-the Articles of Confederation and the Constitution.
  • What are the sources of Federal tax revenue? The Federal Government primarily gets its money from income tax- taxes from individuals and corporations (businesses). It also collects employment taxes on wages and excise taxes on products like tobacco, alcohol, and gasoline. And you're right, states sometimes impose taxes on these same things, too.

    Where do Federal taxes go? The Federal Government uses tax revenue to fund different programs that help the country as a whole, and the citizens within it. Examples of these programs are . . . drum roll, please:






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    Note: For more information and resources on this subject, go to the U.S. Tax Center.
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