That's the theory, in reality it goes to both. One part ges to roads/schools/etc and another part goes to a pile of corrupted politicians or unnecessary middlemen or completely useless endeavors.
The black hole in America is a pretty big one, is just that the taxes pie is big enough and there is enough for both the black hole and the good projects, but the pie is shrinking and people is starting to get angry and to make stupid decisions...
