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Showing posts from June, 2017

Where Federal Tax Money Comes From and Goes To

The Committee for a Responsible Federal Budget recently published their annual study. There are some simple and telling charts that help people better understand the source of the US's tax revenue and where that revenue is spent.  On spending, for every $100 you pay in taxes:  $23.61 goes to Social Security payments and administration $15.26 goes to Medicare, the government health insurance program $9.55 to Medicaid, the health insurance program for the poor $19.82 goes to armed forces, including veterans benefits $6.25 interest on national debt In total, 50% went to Social Security and health programs. Include armed forces and interest payments, and we’re up to about 75%.   The 2016 federal budget fell $15.24 (out of every $100) short of revenues brought in, having improved from $35.70 in 2011. If a balanced budget were deemed the appropriate thing to do, where would you cut? On the source of tax revenue, you can see individual income taxes are the largest source but payroll t…