Tax time approaches quickly, while I have been procrastinating. It looks like I will have to file for an extension again this year. Not that I owe anything, but you still get fined for late filing.
Anyway while contemplating getting started today I ran across this article. While it doesn't tell you where every dollar goes, it does a pretty good job of laying out where our money goes in easy to understand terms.
Alas, it's not as simple a question as it may seem. For those of you who have trouble balancing your checkbook, imagine trying to keep track of where $4.1 trillion goes. That’s what was spent on your behalf at all levels of federal state and local government last year.
Even with armies of accountants and auditors, it’s hard to know with certainty exactly where your taxes ended up. For starters, you pay taxes based on a calendar year; the government spends it based on a fiscal year that begins Oct. 1. Even if the calendars matched up, the journey your tax dollars embark on depends a lot on things like how much you make, how you spend it and where you live. ....
So where did your money go after you sent it off to Tax Heaven? One way to find out is to look at the government's bills. If the government sat down at the kitchen table to try to see where its paycheck went, here’s — very roughly — where it went in 2007.
To make the math a little easier, let’s assume the government made $52,000 a year — or $1,000 a week — which is about the median household income in the U.S. (The real number was $48,200 in 2006. And keep in mind that $1,000 a week doesn’t include taxes. But you’re the government — you don’t pay taxes.)
The biggest government bill last year was for a category called “income security” ($220 of that $1,000 weekly paycheck) — which includes Social Security ($115), along with other social services like welfare ($46), disability payments ($35) and unemployment insurance ($7). The next biggest chunk went to pay for health care ($203), which includes Medicaid and Medicare.
Keeping our country — and your neighborhood — safe cost almost $200 a week, including national defense ($132), along with spending on “public order and safety” ($65), which included police ($27), prisons ($18), courts ($12) and fighting fires ($8).
Education took the next biggest slice ($158) — most of which went to pay for elementary and secondary schools ($117). Much of the rest helped pay for college ($28). About $2 a week of our $1,000 a week paycheck went to pay for public libraries.
Then there’s "general public service" — or the cost of government itself. Unfortunately, government — like many Americans — has been living beyond its means and spending more than it collects in taxes. To make up the difference, state and federal treasuries filled in the gap by selling more debt — roughly the same as you or me using our credit cards. So the biggest single component of the $143 cost of running federal, state and local government last year was the interest on the money borrowed on your behalf ($90). Think of it as the minimum monthly payment on your government’s credit card.
The cost of running all levels of government also included salaries and expenses for the executive and legislative branches ($21) and the cost of collecting taxes ($11).
After that, the bills looked pretty manageable — but then you only had about $79 left. Those bills included highways ($25), agriculture ($8) air transport ($4), air and water quality ($7) and the space program ($3). Rounding out the list were housing and community service ($10) and recreation and culture ($7).
I feel so much better now.... Not!










