Here’s how the government spends your tax money


With another tax season upon us, many people may be wondering what the government does with all the money we fork over every year.

The National Priorities Project is a nonpartisan research organization that works to make federal budget information more transparent. Last year, the group broke down the distribution of every tax dollar received by the federal government in 2014.

Read more: 12 tax breaks for middle class families

Where your tax dollars are going

At 27¢ per dollar, the military got the most money. Health ran a close second at 26.5¢ per dollar.

About 15.3¢ of each dollar went toward interest on the national debt, and 8.4¢ was given to unemployment and labor.

Other national causes received far less money — education got 2.5¢, transportation received 1.9¢, and housing and community only got .1¢.


how the government spends your tax dollars

Read more: This tip can save you over $1,000 on your tax bill

State taxes

But what about state taxes? With the federal government in control of military spending, the states put most of their money toward education and Medicaid. According to the National Association of State Budget Officers, in fiscal 2015, state spending increased at its fastest rate since 1992, mostly because of growth in federal Medicaid funds through the Affordable Care Act.

how the government spends your tax dollars

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