Friday, September 22nd, 2006
Death And Taxes
This is an amazing site –
The Death and Taxes interactive graph shows where about 1/3 of your taxes go. The other 2/3 goes to entitlement programs and interest, illustrated below -
It should also be pointed out that unexpected supplementary spending (e.g.: spending on Iraq & Afghanistan) is not included, and represents an extra 100 billion dollars or so for 2007. Also of note, the entitlement balloons above will grow signifigantly over the next 40 years eclipsing all other spending by a signifigant amount.
From Wikipedia:
Federal Government’s Total Estimated Income for 2007:
Estimated receipts for fiscal year 2007 are $2.4 trillion. This expected income is broken down by the following sources:
$1.1 trillion (+12.1%) – Individual income tax
$884.1 billion (+7.4%) – Social Security and other payroll taxes
$260.6 billion (+15.5%) – Corporate income tax
$74.6 billion (-1.3%) – Excise taxes
$28.1 billion (+0.7%) – Customs duties
$23.7 billion (-9.2%) – Estate and gift taxes
$48.4 billion (+14.0%) – Other
Federal Government’s Total Estimated Spending for 2007:
The President’s budget for 2007 totals $2.8 trillion. This budget request is broken down by the following expenditures:
$586.1 billion (+7.0%) – Social Security
$466.0 billion (+4.0%) – Defense
$394.5 billion (+12.4%) – Medicare
$367.0 billion (+2.0%) – Unemployment and welfare
$276.4 billion (+2.9%) – Medicaid and other health related
$243.7 billion (+13.4%) – Interest on debt
$89.9 billion (+1.3%) – Education and training
$76.9 billion (+8.1%) – Transportation
$72.6 billion (+5.8%) – Veterans’ benefits
$43.5 billion (+9.2%) – Administration of justice
$33.1 billion (+5.7%) – Natural resources and environment
$32.5 billion (-15.4%) – Foreign affairs
$27.0 billion (+3.7%) – Agriculture
$26.8 billion (+28.7%) – Community and regional development
$25.0 billion (+4.0%) – Science and technology
$20.1 billion (+11.4%) – General government
$1.1 billion (-47.6%) – Energy
I was doing some calculations on taxation over the weekend. People mistakenly think their tax rate is the federal tax bracket they sit in. Unfortunatly this doesn’t include Social Security, Medicare, and embedded taxes (corporate taxes embedded in goods you purchase which are passed along to consumers in the price of products we buy). Overall, regardless of whether your making $12,000.00 a year or $100,000.00 a year, your effective tax rate is currently around 50%.
September 22nd, 2006 at 6:02 pm
long time reader first time commenter said:
“Also of note, the entitlement balloons above will grow signifigantly over the next 40 years eclipsing all other spending unless these programs are reformed.”
Not if the neo-con/republicans have their way, the largest growth will be the “Interest on the National Debt” line item.
Also when are we are going to rename the non-military descretionary line item to Halliburton, Inc?
September 22nd, 2006 at 6:30 pm
Jim Mathies said:
The largest growth will be in entitlements, hands down. It already eclipses all other government spending. And it’s going to get worse, much much worse.