Unlike state taxes, the majority of federal taxes are spent on

encouraging new business development
defense and health care programs
local roads and highways improvements
funding for a new school in a growing area

Respuesta :

defense and health care programs

Health care programs are known to cost the federal budget over fifty percent of the total, with defense following closely. The federal government has invested heavily in healthcare welfare related projects.
 Federal taxes have 3 biggest categories: defense, major health programs and social security. The answer is most likely C.