Paying taxes is no fun, and as the tax season is just over, there are millions of people who have just sent more money to the IRS than they actually wanted to pay. If you've just written a big check to the federal government, you might be curious as to where your hard-earned money will go.
Every year the federal government gives the public an idea of how they spend the tax revenue. That brings money. With spending just under $ 4 trillion available last year for which government data is available, the money you and millions have just sent to the Treasury will be used for a variety of purposes.
The calculation of national budgets
In the 2017 fiscal year of the Federal Government, the tax amounts amounted to 3.32 trillion US dollars. That was a long way from the $ 3.98 trillion the government had spent this year, lending money to the Treasury to make the difference of $ 665 billion. Most of this money came from individual taxpayers. 40% came from personal income taxes and another 29% from social security, Medicare, unemployment and other taxes, which are normally withheld through payroll tax. Borrowing to cover the deficit was 17% of total expenditure.
As you can see below, the government spent this money mainly in three key areas, with five out of six dollars falling into these categories.
The largest category is Social Security, Medicare and other retirement plans. The federal government offers these programs to help retirees and disabled people with income support, and they offer medical care to older people in particular. With more than 60 million people receiving social security and nearly all those 65 or older to qualify for Medicare, it is no wonder that the federal government spends two-fifths of its budget on supporting these programs.
Social programs represent the second largest category of federal spending. The best-known programs that fall into this category are the Medicaid Medicare program for low-income Americans and the Supplemental Nutrition Assistance Program, which provides low-cash people with money to buy food. The supplementary security income program managed by the Social Security Agency also falls into this category due to its needs-based policies. Other similar programs provide temporary financial support to needy families and cover other social needs. A small part of this money goes into health research and public health programs, as well as providing housing, unemployment benefits and other social services.
The third largest expenditures flow into national defense. This includes not only the money required to pay for military salaries and the purchase or modernization of military equipment, but also the financing of veteran services and benefits. In addition, military and economic assistance to foreign countries along with the cost of maintaining overseas messages fall into this category.
The remaining approximately 16% of the budget will be spread across a wider range of programs. Around half of this is in areas such as agriculture, natural resources, environment, transport, education, vocational training, science, banking, commercial and housing, and Community development activities. Public debt interest rates account for 6% of total expenditure, so 2% is needed to meet the needs of the state.
What is particularly worrying is the assumption that the burden on the federal budget will increase in future years. A number of factors will contribute to this trend:
- The retirement of the baby boomer generation will lead to increased benefits and benefits that could impact their respective trust funds.
- Higher interest rates could lead to a large increase in the amount of money required to pay interest on government debt.
- Health spending has been rising faster than total inflation for years, and if that trend continues, Medicare and Medicaid will face further difficulties. 19659019] As a taxpayer, you have no direct influence on how the federal government spends the taxes you pay. But the more you know about government spending, the easier it will be to use your rights as an American to seek a tax policy that makes sense to you and the public at large.