Where did your tax dollars go after last April 15?
If you wonder where each of your tax dollars go, the following figure from The Heritage Foundation gives you an accurate picture of the expenditures greater than 1% of the total taxes.
Please note the nearly 33% discrepancy between the amount collected on tax day and the amount spent during the year – almost $10,000 per household more – adding $1.1T to our children and grandchildren’s debt.
According to the federal Taxpayer Advocate in its 2012 report, Americans’ cost of complying with today’s complex tax code totaled $168 billion in 2010. That’s almost as large as the impact of the Obama tax hikes in fiscal year 2013, and twice the size of sequestration this year [see chart].
It takes taxpayers 6.1 billion hours—or 51 hours per household—to complete all the required filings. That’s more than six full eight-hour working days per household!
As the above infographic shows, 45 percent or almost half of all spending pays for Social Security and health care entitlements. Without reforming these massive and growing programs, Washington will never balance its budget and the debt will continue to increase.
The interest paid on this debt is currently $220B per year and will increase to $880B by 2023 assuming increasing debt and projected inflation increases. Obama’s 2013 budget never balances the budget in future years, as far as the eye can see, and continues to increase government’s influence over our financial and personal lives.