America existed fine for decades without taxing its citizens

At one time we existed fine without income taxation. It makes you wonder what they do will all that money they collect. Is it lost in the IRS administration and disappearing into unknown accounts? Is it being funded into buy hardware from Department of Defense contractors where a hammer costs $759 and 2 million were ordered? Is it going into unknown "expense accounts"? Is it going into various special programs where the net result is about $10 worth of service and the program costs $2 million?