Sunday, November 21, 2010

Which taxes finance which programs


Which taxes finance which programs?
I know that property taxes finance public education. But which tax finances roads? Which finances food stamps, Medicaid, Medicare...etc? And whatever other programs you can think of? I'm just interested in knowing the specific tax responsible for funding various programs, as a matter of curiosity.
United States - 3 Answers

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1
It is such a mishmash that your question is impossible to answer. Some taxes are directed to specific uses, others are general and go into the common pot.


2
Although a specific tax may be earmarked for a particular program, the wording of the implementing legislation ususally leaves it up to the legislators to decide. Very often taxes wind up in the General Fund and are used for things that bear no relation to the original avowed intenet.


3
SS tax taken from earned income is the only one I know of that specifically finances SS payments. Medicare tax finances part of Medicare, but it is also partly financed from general tax revenues. Other taxes that presumably finance certain things, actually get diverted to other things. For example, gasoline taxes help finance roads and bridges, but they also finance other "transportation" items such as railroads and air travel.

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