Best Answer

At a state level your income taxes may being doing what they are suppose to, but at a federal level, they do the same thing they have for a very long time...please, let me copy and past from "PRESIDENT'S PRIVATE SECTOR SURVEY ON COST CONTROL" A REPORT TO THE PRESIDENT (Reagan) ..."Resistance to additional income taxes would be even more widespread if people were aware that: * One-third of all their taxes is consumed by waste and inefficiency in the Federal Government as we identified in our survey. * Another one-third of all their taxes escapes collection from others as the underground economy blossoms in direct proportion to tax increases and places even more pressure on law abiding taxpayers, promoting still more underground economy-a vicious cycle that must be broken. * With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government. " That's right, not "one nickel is spent on the services which taxpayers expect..." they are all simply absorbed by THE INTEREST of the Federal Debt...Thank the IRS and Fed Reserve, and of course our govt for being so helpful to them, for taking the time to set up such a great Fiat money system where no surplus can ever happen, where our actual worth has been turned into nothing but debt). ---------------------------------------------------------------------------------------------------- "....This nation is bankrupt; every State in this Union is bankrupt; the people of the United States, as a whole, are bankrupt. The public and private debts of this Nation, which are evidenced by bonds, mortgages, notes, or other written instruments amount to about $250,000,000,000, and it is estimated that there is about $50,000,000,000 of which there is no record, making in all about $300,000,000,000 of public and private debts. The total physical cash value of all the property in the United States is now estimated at about $70,000,000,000. That is more than it would bring if sold at public auction. In this we do not include debts or the evidence of debts, such as bonds, mortgages, and so forth. These are not physical property. They will have to be paid out of the physical property. How are we going to pay $300,000,000,000 with only $70,000,000,000?" - Congressman Lemke, 1934 "If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." - Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta Federal Reserve Governor Marriner Eccles testified before the House Committee on Banking and Currency, September 30, 1941. Congressman Wright Patman asked Eccles how the fed got the money to purchase two billion dollars worth of government bonds in 1933. Eccles answered, "We created it." Patman asked, "Out of what?" Eccles replied, "Out of the right to issue credit money." Patman queried, "And there is nothing behind it, is there, except our government's credit?" Eccles responded, "That is what our money system is. If there were no debts in our money system, there wouldn't be any money."

User Avatar

Wiki User

โˆ™ 2009-04-01 04:27:51
This answer is:
User Avatar
Study guides

US Civil War

20 cards

Why were poll taxes created

What is a graduated income tax

What sparked the beginning of the Civil War

When Abraham Lincoln was elected president what was the result for the southern states

See all cards
98 Reviews

Add your answer:

Earn +20 pts
Q: What does the government spend our income tax on?
Write your answer...
Still have questions?
magnify glass
Related questions

What created the income on tax?

Your question is backwards. There is no income on tax. However, there is a tax on income. This is known as income tax. Income tax is a system created by the government that takes a percentage of your income out of your check based on how much money you earn. Generally speaking, the higher your income, the higher the percentage of it the government takes.

Can the government tax the income of people?

They can and they do.

What is income tex?

An income tax is a tax imposed by a government directly on financial income. It varies with the income or profits of the taxpayer.

What is the income tax?

The federal income tax is a source of revenue that the government uses to help for the operations of the government business and services.

From which form government gets more Income?

income tax

Is federal income tax direct or indirect?

Federal income tax is a direct tax on income and not an indirect tax. Direct taxes are paid directly to the government.

Who is gives maximum tax in India government?

Income Tax

Do US citizens have to pay tax on employment income?

Yes. It's called Income Tax. States can require an income tax, and there is tax payable to the Federal Government.

Income tax means?

Income tax refers to the tax that a government imposes on the financial income that is generated by all the business entities within their jurisdiction.

Does the government have the right to tax your income?


Which action from us government would most encourage consumers to spend money in the free market?

lower the amount of personal income tax

What is an income tax?

A percentage imposed by government on the adjusted gross income.

People also asked