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Finding the Balance of Income vs. Spending

2/5/2020

Every year the IRS publishes instructions to prepare your Form 1040, individual tax return. The publication for 2019 is a whopping 108 pages! On page 103 of the IRS booklet is a summary of collections (income) and spending (outlays) by the federal government. Given the election year, here is a summary of this recap and some general observations.*

 

Two pie charts, one showing the breakdown of federal government income, the other with a breakdown of their spending

Observations

23%: The amount of annual spending with no income to cover it.

63%: The amount of spending for social programs, Social Security and Medicare.

20%: National defense (15%), veterans benefits (4%), foreign aid (1%)

8%: Amount of annual budget required to pay interest on prior year deficits.

Why care?

Want to learn more?

The website www.usafacts.org is a great resource for an objective review of the numbers. This nonprofit is committed to providing the figures and letting you decide what they mean to you.

Or, contact us today to learn about our tax services. We can help you with your tax returns, tax projections and more. 

*for the fiscal year 2018 ending September 30, 2018.

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