Home » MONEY FORUMS » Financial Literacy » I am completely mystified about the United States Federal Income tax system. Where exactly does that money go? Is there a resource available to the public were taxpayers can see an itemized budget of how the Federal Income tax collected is spent? Furthermore I am aware of the fact that for decades there has been a debate on whether or not US citizens are required to pay a Federal Income tax. Is there a law that actually requires Americans to pay a federal income tax? If so, could you point me to that law? If there is no law then why are Americans required to pay it?