What do they really do with all the "money" you give them?
Lets see who gets it right.
2007-10-25 15:50:45 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Let me guess, you read somewhere that the Grace commission said that all income tax revenue only goes to pay interest on the debt. Considering that report was done more than 20 years ago and the debt has more than tripled since then, you would think the government would have come to a screeching halt. Since it hasn't, don't you think they may have been mistaken?
In either case, let's look at some real numbers. Total individual income tax revenue collected in 2006 - $1.04 trillion. That is actual amount collected, not what was owed.
http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?DocID=203&Topic2id=20&Topic3id=21
The entire U.S. Government debt at the end of 2006 - $8.5 trillion.
http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm
In order for all individual income taxes to go to just the interest on the debt, the interest rate would have to be 12.2%. The interest on the debt isn't anywhere near that. In fact, it is close to 5%. Total interest paid in 2006 on the debt was $405.9 billion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
Finally, to answer your question, the IRS is a government agency that is part of the U.S. Treasury department. All income tax revenue goes into the general fund.
So, after looking at verifiable facts, where do you think the individual income taxes go?
2007-10-27 06:30:21 · answer #1 · answered by NGC6205 7 · 1⤊ 0⤋
Have you been reading Tax Protester websites? The ones that say that the IRS is a private company and all the money goes to the Federal Reserve which is a private bank.
They are wrong.
The IRS is part of the US Dept. of Treasury. The money collected goes into the US Treasury for Congress and the Senate to spend how they see fit.
2007-10-25 16:08:24 · answer #2 · answered by Wayne Z 7 · 2⤊ 1⤋
The IRS is the collection agency for the Treasury Dept
2007-10-25 15:54:40 · answer #3 · answered by Scott K 7 · 2⤊ 1⤋
It goes in the bank and thence to the Treasury Dept. IRS keeps none of it
2007-10-25 16:35:50 · answer #4 · answered by Anonymous · 0⤊ 1⤋
The IRS is just the bullys who take our money, then it goes right into the hands of the politicians to spend on their "pork" projects, including the war PORK PORK PORK!
2007-10-26 01:54:16 · answer #5 · answered by rxing 7 · 0⤊ 1⤋
It goes straight into the General Fund.
2007-10-26 00:22:10 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋