How Does The Government Spend Your Money?
Before we spend your tax dollars, let’s take a quick look at where the government gets its money in the first place.
Forty-seven percent of federal revenue comes from your 1040 Income Tax payments. Those evil corporations collect another 34 percent in payroll taxes that cover the cost of Social Security, Medicare, and Unemployment Insurance.
The evil corporations collect another 10 percent of the total revenue and the remaining 9 percent come from excise taxes, estate taxes, and any other taxes.
Let’s Go Shopping
In 2013 we all chipped in and sent the feds a cool $3.5 trillion. It just rolls of the tongue doesn’t it? That’s 21 percent of our Gross Domestic Product. We are unable to pay our bills with $2.8 trillion (so hard to make it on such a low income) so we have to borrow $680 billion to make ends meet. Your kids will get the bill for that in the future so you can have immediate gratification today.
Defense: Everyone was happy to pay the 19 percent, or $643 billion, of the budget that went to defense in 2013. Ninety-three billion went to our middle east war effort.
Social Security: Those greedy seniors are not cheap. Twenty-four percent of the budget or $814 billion pay the average Social Security recipient $1,294. It also pays 2.9 million spouses and children of retired workers and 6.2 million surviving children and spouses of deceased workers, and also 11 million disabled worker and their eligible dependents.
Medicare, Medicaid and CHIP: These three insurance programs amount to 22 percent of the budget coming in at about $722 billion. Medicare amounts to about 66 percent or $498 billion. The rest funds Medicaid and CHIP that provides care to about 70 million low-income groups. Medicaid and CHIP require matching payments from the states.
Safety Net Programs: Depending on your point of view there is not much difference between a safety net and a hammock. But the war on poverty takes about $398 billion dollars to keep the poverty needle where it has been for forty years. Currently you are paying for 126 poverty programs.
Interest On The Debt: The smallest part of the debt coming in at $221 billion, about 6 percent of the budget.
Some Final Thoughts
Safety Nets and Interest on the Debt account for about a fifth of total federal spending. Are you really happy with what our national leaders are doing with your funds?
When you are talking about trillions (plural) of dollars that’s almost too much to keep track of even with super computers. It seems to me that if we tightened our belt put a few billion away making a very conservative 5-7% each year none of us would ever have to pay taxes again. And the debt would disappear. But the mind set is spend it all or you won’t get as much next year. How much sense does that make?