The holiday season is now over, which means the advent of tax season is officially here. I know, but what can you do?
The average American taxpayer can expect to be taxed at about 31.5% of their wages, which comes out to a massive government-collected sum each year.
Have you ever wondered where exactly this cache of tax dollars winds up?
In fiscal year 2016, the government expects to spend a federal budget of $4.1 trillion. That’s quite a sum to divvy up, but the good folks over at Community Tax have determined where the government is funneling these funds.
Not surprisingly, health care, social security, and national defense come in as the top three expenses; they make up about 65% of the budget all by themselves.
So where does the other 35% go? Well … transportation, space & technology, the environment, and law enforcement follow behind in smaller percentage increments, and form a large part of the residual monies spent. And while some of the expenditures are expected and easily accepted as essential, others come as a bit of a surprise. For example, consider the cost of minting common coins: In 2013, the U.S. Mint lost around $105 million minting pennies and nickels.
Doesn’t losing money to create money seem more than a little counterproductive?
With that in mind, check out the infographic below to see where the government will be distributing all of its taxpayer dollars in 2016 — you might just be shocked at an expenditure or two.
Photo Credit: DonkeyHotey; Infographic: Community Tax
So how much longer until the US ditches the Penny? I know a few people who save the Pre-1982 for copper value. Interesting look at our tax dollar. …..I would like to meet this bomb sniffing Elephant
They should have ditched it two decades ago, JB. The Canadians did awhile back and I don’t think anyone there is complaining.
Oh … And while they’re at it, they need to ditch the nickel too.
Awesome post. Modern entrepreneurs are driven by money and sex. If you don’t believe, I say you have lost the EDGE in today’s culture.
If you say so, Sumon.
Fascinating to see a graphical breakdown. I’ve always found it interesting how much we spend on military, but was surprised to see healthcare is higher.
Is there any figure on how much taxpayers pay in subsidies that help the people who cannot afford the “affordable health care”? I’m just curious.
JD, in a bit of financial obfuscation, Obamacare cast off a lot of directly-attributable costs by expanding Medicare rolls. From CNS:
“Under the ACA, the exchanges began enrolling people in federally subsidized health-insurance plans and in Medicaid.
“In fiscal 2013, the year before the health insurance exchanges opened, the federal government spent $265 billion on Medicaid, according to CBO. (In fiscal 2014), the first year that the exchanges will be in operation, the federal government will spend $305 billion on Medicaid. By 2023, the tenth year that the Obamacare exchanges will be in operation, Medicaid will cost the federal government $539 billionmore than double the $265 billion it cost in 2013.
“By 2024, the last year in the CBO estimates, Medicaid spending will climb to $570 billion.
“In fiscal 2014, the first year of the Obamacare exchanges, the federal government will spend $17 billion on subsidies for people who buy their insurance there. By 2023, the tenth year of the exchanges, the federal government will be spending $134 billion on subsidies for people buying their insurance there.
“The $134 billion that the federal government will dole out in Obamacare subsidies in fiscal 2014 is 7.9 times as much at the $17 billion it will dole out (in 2013).
“In 2024, the last year in the CBO estimates, the Obamacare subsidies will increase to $137 billion.
“The combined $707 billion that the federal government will spend on Medicaid and Obamacare subsidies in 2024 is roughly equal to the $716 billion the CBO estimates the government will spend on national defense that year.”
Frankly, I suspect the already-overburdened US financial system will implode long before we get to that point.
Great facts, Len. It’s really good to know where our taxes are spent on. I just hope that the results of international affairs are very beneficial to our nation.