Exploring the Allocation of Your Tax Dollars

The video explores the concept of taxes, starting with personal experiences of receiving a first paycheck and discovering deductions. It delves into the history of income tax in the U.S., highlighting significant changes over time. Using Tabitha's example, it breaks down how federal taxes are allocated to various programs, such as Social Security, Medicare, and defense. The video emphasizes the importance of understanding tax spending and encourages viewers to engage with representatives to influence how tax money is used. It concludes with a sponsorship message from Audible.

What are the two main categories into which Uncle Sam's portion of your paycheck is divided?

• State Tax and Local Tax

• Health Insurance and Retirement Fund

• FICA and Federal Income Tax

• Medicare and Social Security

What is the primary focus of the Federal Insurance Contribution Act (FICA)?

• Infrastructure development

• Military expenditure

• Insurance for the elderly

• Education funding

Before which year were income taxes actually forbidden by the U.S. Constitution?

• 1981

• 1945

• 1913

• 2000

What was the top tax rate in 1981 for singles earning over $108,300?

• 80%

• 70%

• 60%

• 50%

What percentage of Tabitha's federal taxes is spent on medical programs for low-income families?

• About 40%

• About 50%

• About 30%

• About 20%

What percentage of Tabitha's federal taxes goes towards insurance programs?

• 60%

• 50%

• 70%

• 40%

How much of Tabitha's salary is used to support the armed forces?

• $830

• $930

• $1130

• $1030

What amount of Tabitha's income taxes goes to pay back government debt and interest?

• $425

• $525

• $625

• $725

Which of the following receives the least funding from Tabitha's salary?

• Veteran’s Benefits

• Unemployment and Labor programs

• America’s science programs

• International Affairs

How can individuals influence how their tax dollars are spent?

• By voting in presidential elections only

• By contacting local representatives and educating themselves

• By refusing to pay taxes

• By moving to a state with no income tax