1. Federal Tax Revenue and Spending A very basic overview Put simply, taxes are money collected by the government to finance public expenses. American workers paid over $2.2 Trillion in taxes in 2014. Where does the money come from? What is it spent on?

2. The money valve – coming In Income Tax Paid by employees to federal and state government – from our paychecks. Payroll Taxes Federal and state taxes that all EMPLOYERS –both public and private must pay, based on a % of the employee’s salary. Medicare and SSI Corporate Income Tax A % of profits paid by a business to the government. Excise, Estate taxes Excise – sales taxes Estate – property (real estate) transferred from death to an heir. info from Office and Management and Budget

3. Spent on what? Almost 70% of federal spending goes to 3 things: Social Security Pays monthly benefits to elderly, retirees, military, disabled workers Medicare etc. Insurance programs for elderly, poor and disabled. More than 120 million Americans receive this benefit Defense Military and security-related including Homeland Security and all soldiers, equipment, etc.