Where Your Taxes are Going
The pleasure of finalizing the disgorgement of our tax dollars to the federal beast has come and gone. I think now it would be fun yet painful to look at some federal income tax data courtesy of the Congressional Budget Office.
Where Your Tax Dollars Being Spent
Here is the CBO breakdown on allocation of federal tax dollars to different segments of the federal budget:
The interest on debt is now 8% of the budget. That will be steadily climbing, as will Social Security as baby boomers retire. Both factors will lead to more taxes.
The “safety net programs” label is an interesting way to spin the concept of income re-distribution, for which the IRS has now become a primary tool.
Who is Paying the Taxes
The CBO this month also released its most recent projections on the distribution of federal taxes and household income which I also found interesting. (I’m not sure why it uses 2006 data.)
To me the most revealing component of these projections is in the highest quintile of family income. I say this because only those folks are burdened with a share of federal tax liabilities that exceeds their share of household income. For each of the lower income groups, their share of the income pool is greater than their share of the federal tax burden.
Say what you want about the wealthy, but this data tells me that they are paying more than their fair share of federal taxes. The problem is that there is so much money envy in our society that many of those with lower incomes just assume that it is unfair that others make more or have more. So their knee-jerk reaction is to say “tax them” until they don’t have more.
Now I have to return to money making activities. The government is waiting.