Taxes are eating your Money, how to Save it?
You do the part of dutiful citizen and pay your taxes every April, but do you really know where your money is going? The federal government is charged with using taxpayer money to finance public services, and you may be surprised to learn what happens to the dollars from your pocket. From national defense efforts to funds dedicated to responding to natural disasters, we got down to the nitty gritty and figured out where every last penny winds up. Some of our findings may come as a shock, and some may reinforce what you already know; either way, it is good to know where your hard earned money winds up.
The latest research indicates that on average, 31.5 percent of American citizen’s pre-taxed wages are taxed, making it no wonder that taxpayer contributions make up nearly half of the government’s revenue. In fiscal year 2016, the federal budget is 4.1 trillion dollars—that is a large chunk of change, so how will this massive sum be spent?
Also read: 10 Income Tax headache you want to Avoid
It should come as no surprise that health care is the top expense for the federal budget, making up almost 27% of spending. This expenditure is closely followed by social security and national defense spending; together the three make up for 65% of the overall budget.
With a majority of federal dollars going to this trio of expenditures, what does that mean for investment in other important sectors, such as education and job training and international affairs? Our infographic explores the details of the federal budget and finds out just how much our government allocates to transportation, the environment, law enforcement, and technology programs—it might not be as much as you think.
Not every government spending decision will be as expected as the previously mentioned. In fact, some of the tax expenses might downright shock you. Since 2000 alone, American taxpayers have contributed almost $3.9 billion on football stadiums for NFL teams. Another interesting tax cost? The United States Mint lost $105 million in 2013 minting pennies and nickels, which cost more to make than they’re worth.
The real kicker? In 2013, the U.S. spent $10 million promoting the National Guard in the Superman movie. With these interesting budget costs, understanding exactly what happens to the community tax dollar is more important than ever. Get the down low on where your taxes will be funneled in the next fiscal year with our infographic.