Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their money. Here’s a brief breakdown that explains how the Federal Government spends our tax money.
In 2017, as in recent years, Americans spent more on taxes than on groceries, clothing, and shelter combined. In fact, we worked until late April just to earn enough money to pay our taxes. So what do all those weeks of work get us?1
The accompanying chart breaks down the $4 trillion in federal spending for 2017 into major categories. One of the biggest categories is Social Security, which consumes one-fourth of the budget. Income security, which includes food assistance and unemployment compensation, takes another 13%. Defense and related items take 15% of the budget, and 26% goes to Medicare and health programs.2
Are taxes one of your biggest budget items? Take steps to make sure you’re managing your overall tax bill. Please consult a tax professional for specific information regarding your individual situation.
2 Center on Budget and Policy Priorities, January 29, 2019
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