Dollars & Cents: The Federal Budget - Do You Know How Your Taxes Are Being Spent?
The Results May Surprise You
Before today, I didn't have a good feel for federal budget, even after earning a Bachelor's Degree in Political Science and a Master's in Public Policy. Sure, one can assume that the federal government spends a lot on defense, but how much is a lot? I didn't really know.
I realized if I don't have a good feel for the federal budget, despite my extensive studies, then the many others must also be in the dark.
This lack of understanding has not prevented discourse. Even without knowing the budget, people still have formed very strong opinions on taxes and spending. Still, I'd like to provide a simple analysis of the federal budget. With a better understanding of the federal budget, armchair pundits will develop more accurate opinions.
These figures are derived from the fiscal year (FY) 2003 budget.
Income
For starters, where does the government get its money?
This might bother some of you. Most of the federal budget comes straight from your paycheck, 83% to be exact ($1.7 trillion...yes trillion). Individual income taxes account for 47% ($1 trillion) of total federal receipts, while payroll taxes (social security and such) account for 35.5% ($750 billion). That's right, 83% of the federal budget comes straight from your paycheck.
Corporate income taxes account for only 10% of federal receipts at $200 billion. Estate taxes make up only 1% the budget ($23 billion).
Individual Income - 47%
Payroll (FICA) - 35.5%
Corporate Income - 10%
Excise - 3%
Estate - 1%
Customs Duties - 1%
Other - 2.5%
Expenses
To get a better feel, I have analyzed how each $1 of taxes is spent. For each $1 you give to the government, here is how it's spent.
Surprising to me, only 18 cents of each tax dollar goes to defense. Most of the federal spending actually goes to Social Security (22.4 cents). Interestingly, 8.5 cents of your $1 don't go anywhere, but are instead used to pay interest on the debt.
Here's a complete breakdown:
Social Security - 22.4 cents
Defense - 18 cents
Welfare & Unemployment - 15 cents
Medicare - 11 cents
Medicaid - 11 cents
Debt interest - 8.5 cents
Education - 3.7 cents
Veterans Benefits - 2.8 cents
Department of Justice - 2 cents
Environment & Natural Resources - 1.4 cents
Agriculture - 1 cent
Foreign affairs - 1 cent
Others - 2.2 cents
Total - $1
These figures are based on FY 2003 budget.
Data derived from figures found here:
Published by Scott Schlimmer
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10 Comments
Post a CommentThis is outrageous. You would think that corporations would have to pay more if it weren't for all the tax breaks that they get and the fact that the government is in their back pocket.
I am interested in getting a little deeper into the budget of the United States. But I appreciate your beginning. I am assuming from your figures which you have tried to make more clear by creating percentages, that the FICA tax basically covers the social security and medicare payments with a little left over. I did not realize until a few years ago that the FICA tax is only collected on income up to 87000 dollars annually. In other words a millionaire pays the same social secuity tax as the person making 87000. That was news to me. Another thing I only recently came to know was that the federal govt does not keep the FICA tax separate and use it only for social security payments. This alone would be helpful in assuring that when we are too old for many kinds of work we would not be destitute and a complete burden on our families. There was a time when people could build up a savings and feel reasonably secure they would not have to rely on charity to live out their old age b
Sorry, I find your arguments weak, your personal attacks misguided, and the topic clear. There was no taxation or centralized bank under the Articles of Confederation, but things were chaotic under the Articles, which is why we scrapped the Articles and came up with the Constitution. Taxatation, centralized banking, etc. are all explicitly permitted in the Constitution. Again, Article I Section 8. Sorry, it isn't looking like you'll be convincing me.
As for honorable, respectable, and deceptive...it seems you have assigned some meaning beyond that which I intended. Your article offers up as respectable and decipherable the activity of the fed. That is deceptive and is a tactic of the fed itself. They function under what is called the "color of law". They do not deserve that respect, hence my use of "respectable", and when we speak of them as if they are honorable we are being deceptive. The congress turned over to the bank called the fed it's powers to control money which it cannot do...yet, it was done. Further, it was done illegally and even Woodrow Wilson who signed it into being said that he had ruined his country via that act. We must fight that monster, not lend it credibility. Anyway, Scott, use the link I sent and look it over.
Here is a link that will help you with initial understanding... take it or leave it... truth is sometimes hard work. http://video.google.com/videoplay?docid=-4312730277175242198&q=
Keep in touch. -Dan
The federal government does not get money from our income taxes. The federal government borrows money from the federal reserve bank and then the bank takes it back from our wages...which is not legal. Again, your assertions are misleading and incorrect. How much emotion should I not have in order to tell you that, or not tell you that...or whatever?
Emotion? Huhmm. You are sensing something stimulated by my words through a filter inside yourself.
Where is the law that says "taxes" as they are taken from peoples' wages are taxable when in fact our constitution says no? Anyway, my assertions are not really emotional beyond that emotion that occurs when someone who is supposed to be trained and learned in these matters-you- is representing the falsehoods of the IRS and it's proceeds from illegl activity as if it is perfectly OK.
I'm going to need some help on where to start. My first instinct is the Constitution. Article 1, Section 8. "Clause 1: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States." That's seems too clear, not worthy of an article. Can you better explain your tax objections? More facts and less emotion? That should give me a better idea where to start.
First of all, realize your opinion is so strong that it pushes you into the zealot range. To somebody who is relatively disinterested and neutral, your comments come off as pure emotion. You've even misconstrued my article and demonized me. "Honorable"? "Respectable"? "Deceptive?" Where I ask? Nowhere. This article tells where the federal government gets its money, and where it spends its money. The only thing I see is that I used the possessive "its". If that's your evidence, then you're far too touchy. - That being said, if I ignore that your mischaracterizations, you bring up an interesting topic I'd love to approach academically (more fact less emotion). I'm intrigued, and will be happy to explore your questions & write an article on it. Are you speaking of the federal government as a whole? The bureaucratic Executive Branch? Or the IRS specifically? Congress?
Perhaps you are the guy who can tell us, with all those fine degrees and education, why we continue to pay and lay prostrate before that beast you call the federal gov't while in fact that collection agency is in fact a private and for profit corporation made up of bankers? We did not elect it, it has no police powers, yet it is one of the most feared and reviled agencies of any business in this country. It is no more federal than Federal Express...yet, you speak of it as if it is honorable and respectable...there is no foundation in law for a THING that it does. I have trouble reading crap like this. Good talent, just the tendency to decieve that drives me a little pissy.