The Federal income tax is illegal (in the USA), as it is a direct, unapportioned tax. These are strictly forbidden by the constitution.
Government projects are funded by corporate, state, and local taxes.
Federal income taxes go directly into the pockets of the federal reserve, which is a private corporation that loans money to the U.S. at interest and controls the value of the dollar.
Go look it up, you'll find out that these statements are very true. However, keep in mind that if you refuse to pay taxes, the IRS may well come knock your door down and drag you off to prison.