Tax Read Time: 2 min

What Do Your Taxes Pay For?

Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their 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.

Pieces of the Federal Pie

More than 60% of 2017 federal spending was used for Social Security, Medicare, defense, and related programs.

Pieces of the Federal Pie

Source: Center on Budget and Policy Priorities, January 29, 2019

  1. Tax Foundation, 2018
  2. Center on Budget and Policy Priorities, January 29, 2019

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |

Have A Question About This Topic?

Thank you! Oops!
 

Related Content

Near 60? Get a Financial Check-Up

Near 60? Get a Financial Check-Up

Even the savviest and most experienced among us need financial planning check-ins.

The Big Little Things: 5 Easy Ways to Protect Your Money

The Big Little Things: 5 Easy Ways to Protect Your Money

It’s morning and you’re out the door. Immediately your home’s smart devices take over, dialing down the heat, turning off the coffeemaker, and arming surveillance inside and out. In the car, rain-sensing wipers activate at the first drops; adaptive cruise control maintains a steady pace; and upon arrival, parking assist gets you into a tight space, no problem.

Debt Stress

Debt Stress

There’s a link between debt and stress.