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__**Citation**__ "Policy Basics: Where Do Our Federal Tax Dollars Go? ." @http://www.cbpp.org/cms/index.cfm?fa=view&id=1258. 13 Aug. 2012. Web. 6 Sept. 2012. __** Facts **__ > 12.Some of the money goes to the safety net programs.This category of programs includes all programs in the income security function (600) except those that fall in the following two sub functions: federal employees' retirement and disability (602) and general retirement and disability insurance (601). > //13.Education:// The education subcategory combines three sub functions of the education, training, employment, and social services function: elementary, secondary, and vocational education; higher education; and research and general educational aids > 14.While critics often decry "government spending," it is important to look beyond the rhetoric and determine whether the actual public services that government provides are valuable. > 15.Consequently, when thinking about the costs that taxes impose, it is essential to balance those costs against the benefits the nation receives from public services.
 * 1) The federal government collects taxes in order to finance various public services. As policymakers and citizens weigh key decisions about revenues and expenditures, it is instructive to examine what the government does with the money it collects.
 * 2) In fiscal year 2011, the federal government spent $3.6 trillion, amounting to 24 percent of the nation's Gross Domestic Product (GDP).
 * 3) While the level of 2011 expenditures - as a share of GDP - remains high due to the economic downturn, the composition of the budget largely resembles the patterns of recent years.
 * 4) Of that $3.6 trillion, $2.2 trillion was financed by federal tax revenues, and $83 billion by excess profits on assets held by the Federal Reserve. The remaining $1.3 trillion was financed by borrowing; this deficit will ultimately be paid for by future taxpayers.
 * 5) In 2011, 20 percent of the budget, or $718 billion, paid for defense and security-related international activities. The bulk of the spending in this category reflects the underlying costs of the Department of Defense and other security-related activities.
 * 6) Another 20 percent of the budget, or $731 billion, paid for Social Security, which provided retirement benefits averaging $1,229 per month to 35.6 million retired workers in December 2011.
 * 7) Social Security also provided benefits to 2.9 million spouses and children of retired workers, 6.3 million surviving children and spouses of deceased workers, and 10.6 million disabled workers and their eligible dependents in December 2011.
 * 8) Three health insurance programs - Medicare, Medicaid, and the Children's Health Insurance Program (CHIP) - together accounted for 21 percent of the budget in 2011, or $769 billion.
 * 9) Nearly two-thirds of this amount, or $486 billion, went to Medicare, which provides health coverage to around 48 million people who are over the age of 65 or have disabilities.
 * 10) The remainder of this category funds Medicaid and CHIP, which in a typical month in 2011 provided health care or long-term care to about 60 million low-income children, parents, elderly people, and people with disabilities. Both Medicaid and CHIP require matching payments from the states.
 * 11) In 2011, these interest payments claimed $230 billion, or about 6 percent of the budget.