Why We Pay Taxes (Besides the Obvious Fear of Prison) 

📜 Tax History

📅 September 12, 2025

TaxStache Team

Paying taxes feels like subscribing to a streaming service that you never really wanted, except instead of endless true crime and reruns, you get potholes filled and garbage picked up. And unlike that free trial you forgot to cancel, this one comes with legal consequences if you ghost it.       

Still, while the threat of prison is a powerful motivator, it’s not the only reason we fork over a chunk of our paycheck to the government. They are what make society continue to function normally. Let’s go over a brief history of taxes so you know where your money goes.                                                             

A History of Taxes: The Original Unwanted Subscription Service  

Taxes have been around longer than indoor plumbing; the first record of them appearing in Ancient Egypt dates back to around 3000 BC. Ancient civilizations taxed salt, windows, and even urine (thanks, Rome). 

Today, it’s your income, your purchases, and your property. And no, you don’t get to opt out unless you’re also opting out of streetlights, police, public schools, and Medicare when your knees start making that “crunchy” sound.

Yes, it’s annoying. Yes, it’s complicated (sometimes overly so). But it’s also how we collectively keep the lights on.               

Where Does Your Money Go? 

The Federal Budget Breakdown (aka, How You Share the Pizza)

Mmm…taxes. Nobody wants to share their pizza, especially not with the government. But here we are, divvying up your hard-earned dough. Try not to cry into your pepperoni.

Roughly half of that tax pie goes to Social Security and Medicare, helping Grandma stay in her home and filling those prescriptions that cost more than your rent. Around 12-15% support national defense, and a surprisingly large slice covers interest on national debt, which is like paying your credit card bill forever because you financed a whole country. The rest gets divvied up between education, healthcare, infrastructure, and public safety.           

State and Local Taxes: Closer to Home

These are the unsung heroes of your everyday life. Property taxes fund things like your neighborhood schools. Sales taxes help cover emergency services like police and fire departments, trash collection, roads, and that one park down the street you love, with that squeaky but endearing swingset. 

Okay But… Why Not Just Make Elon Musk and All Those Other Rich Guys Pay?

We do, to a certain degree. The U.S. uses what’s called a progressive tax system, where higher earners pay a larger percentage. Unfortunately, there aren’t enough billionaires to cover everything, so the rest of us are left to foot the bill.   

It’s Not About Loving It, Just Understanding It

Nobody likes paying taxes, but doing so is vital. Think of it less like the government picking your pocket, and more like us all chipping in for the stuff that makes life, well, livable. Roads that don’t swallow your car whole, schools that teach kids to read (mostly), clean water so you don’t grow a third eye, and even helping out that one entrepreneurial cousin who keeps “investing” in questionable ventures.     

It’s not about loving it, just understanding that it keeps the whole societal show on the road. Bonus: If you know where your money’s going, you can vote accordingly!               

Who wrote this madness?

TaxStache Team

Team TaxStache is a group of tax nerds with a passion for storytelling. We believe the best way to understand the complex world of finance is through actionable and understandable advice and the unbelievable real-life stories of those who've gone up against the IRS. We're here to make taxes less intimidating and a lot more interesting.

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We’re TaxStache — the loud, colourful antidote to boring tax talk. We cut through the jargon with a wink, a laugh, and the occasional bad moustache pun. We’re here to make you smarter, richer, and maybe even laugh along the way.

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