What does the government do with my money?

What does the government do with my money?

Well the government spends your money in all kinds of ways. One of their biggest expenses is actually interest on national debt. They certainly spend a lot on defense. That is a very large area. Social security and various kinds of social programs. All the other parts of the federal budget are relatively small. The parks department, the justice department, all of those are, as you look at it, are relatively small parts of the pie. The big three would be social security, defense, and interest on the national debt. That is where a lot of your money goes when you pay your federal taxes. At the state level they have got all their state agencies and services that they're providing. They also usually have a lot of debt that they are paying interest on, as well. At the local level typically your taxes are going to support the local government and schools is by far the biggest area where local government is needing money. They have to spend for the teachers and facilities and keeping up the local schools.