Are Government Programs Funded by Taxes?


Quick Answer

The majority of government programs are funded by taxes. The U.S. government collected $3.32 trillion from taxpayers in 2014. That revenue makes up 85 percent of the 2015 budget, making it the country's largest source of income, while the other 15 percent, $561 billion, was borrowed, reports National Priorities Project.

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Full Answer

Spending is divided into three groups by the U.S. Treasury: mandatory spending, discretionary spending and interest on debt, as reported by National Priorities Project. In 2015, mandatory spending accounts for 65 percent of budget allocations. This means that the majority of U.S. tax dollars go towards earned-benefit or entitlement programs. Based on a taxpayer receipt provided by the White House, health care programs received 27.49 percent of taxpayer funds in 2014. National defense received 23.91 percent, and job and family security received 18.17 percent of collected funds in 2014.

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