First I want to break down where the federal government raises its taxes. It goes like this: $1.61 trillion in personal income taxes, $433 billion in corporate taxes, $797 billion in Social Security, $244 billion in Medicare, $55 billion in unemployment, $9 billion in “other” retirement, $100 billion in excise taxes, $21 billion in estate taxes, $39 billion in customs and $77 billion in what the Federal Reserve charges in interest on banks. The grand total federal tax receipts are $3.430 trillion.
Now, let’s look at where we spend our money: $631 billion on defense, $563 billion on nondefense, $938 billion on Social Security, $585 billion on Medicare, $344 billion on Medicaid, $680 billion on mandatory programs, $283 billion on net interest, $6 billion on disasters and negative $67 billion on Joint Committee Enforcement. The grand total of money spent is $3.964 billion. Continue Reading »