I think the hardest worry I have about giving my hard-earned money away is over exactly where that money goes. I have no problem helping those I personally see in need of help. I do have a problem giving my money to people I've never met and, more than likely, never will meet. It's the biggest issue I have with giving money to beggars.
I understand it's degrading to ask for money, especially in a country where independence is highly valued. I really do feel sorry towards those people and the first thought to my mind is that they're just going to spend the money I give them for booze or something other than a necessity.
Anyway, back to the point of tax money and where it's going.
I think if they set up something like probation, where a person has to check in (and perhaps pass a random test) to receive their money, it'd work out better. Why? Jobs - the state would have to hire probation officers, Security - the money wouldn't be as prone to go towards drugs if a person is in fear of being randomly screened, and that all-important warm and fuzzy feeling that the money I've worked hard for is going to someone who needs it.