The taxes we pay to the federal government of the United States support a number of programs. These programs tend to fall within five broad categories. Three of these categories make up the bulk of the spending the federal government does with the taxes it collects.

Social Security. This program helps to ensure that the retirements of the over 65 year old crowd in the United States are at least partially funded. Social security also provides disability payments to those citizens that are medically unable to work. Survivors benefits are also paid to the eligible children and living spouses of the deceased. Social security makes up about 20% of the federal budget.

National security and defense. The category comprises about 20% of the federal budget as well. It centers heavily on funding the security and defense activities of the Department of Defense. This includes operations in international countries as well as operations within the United States as well.

Health Insurance. The budgets for three government funded health insurance programs make up about 21% of the federal budget. These programs are Medicare, the country’s program that helps to provide health insurance to retirees, Medicaid, which provides health insurance primarily to the children that are part of the lower income population, and CHIP, a health insurance program that is designed exclusively for children. Together these three programs provide health insurance for the disabled, elderly, parents and children of the nation who lack the funds to otherwise obtain health insurance for themselves.

Programs that are designed to provide a safety net for people who do not qualify for other programs as well as the country’s interest payments on its burgeoning national debt together make up about 20% of the federal budget. The remaining 20% consists of a range of other programs with smaller federal budgets.