LANSING (WKZO-AM) — Most people have already sent in their 1040’s and are spending their time instead this weekend enjoying the nice weather, the nicest so far this year.
Do you know where your taxes go?
The National Priorities Project’s annual breakdown of income tax spending by the federal government shows the average American paid nearly $13,000 in federal income taxes last year.
Michiganders only paid $10,500 on average. $3,000 of that went to health care, about $1,300 went to Medicaid, and $2,700 went to the military.
They say for the first time ever health-care spending was more than military spending. The researchers say that’s because the costs of health care keeps rising. One reason is because there’s been a big expansion in Medicaid under the Affordable Care Act.
A lot more people are now receiving Medicaid, and right now this tab is being picked up by the federal government and its being reflected in our tax bills.
Their breakdown shows that only 88 dollars from each Michigan taxpayer went to elementary and secondary education. Most of the money for education comes from the taxes paid to the state.
According to their breakdown, income taxes are the biggest source of federal revenue, which essentially means taxpayers pay the federal government’s bills. That’s why the researchers say it’s important for anyone who pays taxes to know exactly how their dollars are being spent.
The researchers say about $100-billion flows back into Michigan for things like grants to the state government, federal employees who live in Michigan and federal contracts to Michigan businesses.
