Hypothecated tax

Hypothecated tax is a way for governments to collect money from taxpayers and use that money for a very specific purpose. It works like this: When you pay your taxes, some of that money is set aside in a special fund. That money can only be used for the specific thing it was collected for. For example, hypothecated taxes might be used to pay for healthcare or to build roads and bridges. So, when you pay your taxes, you know that some of it is going to be used to pay for something that will help all of us.