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What does the Federal Government Do with our Taxes?

by Tryan Hartill

I know there must be some snarky answers swirling in your head after reading that headline, but really where does it all go?

Lew Rockwell has some numbers

Who gets the $17,430?

Directly and indirectly, $17,430 is what the Federal government takes each year, on average, from each American who works, not to mention the big chunk out of their lives taken through regulation. Who gets this $17,430 after it is extracted from working men and women?

  • $3,690 goes to people on Social Security and Disability.
  • $3,492 goes to people in war industries.
  • $2,166 goes to people on Medicare.
  • $1,767 goes to people on Medicaid.
  • $1,505 goes to people on food stamps, welfare (assistance), housing, and income payments.
  • $1,297 goes to lenders for interest.
  • $1,028 goes to people in transportation, environmental, space, science, and regional building industries.
  • $708 goes to Federal employees for their retirement.
  • $688 goes to people in educational industries.
  • $495 goes to veterans.
  • $402 goes to people in the Federal government for their services.
  • $244 goes to people overseas.
  • $ 187 goes to people in agricultural industries.

The figures add to $17,669 because, for one thing, the government borrows more than it takes in. In addition, deciphering and reconciling the government’s various publications and categories introduce fuzziness into the numbers. Since the numbers apply to the average employed person at all income levels, they don’t apply to every individual.

According to the article 48% of Americans are in the workforce and 13% are on Social Security.
A few of the things that jump out at me is the amount spent on the Military, and the amount amount spent on borrowing money.

I might be going a little too Macro here, but how easy would it be to cut 1/5th of the Federal budget?

  • Cut military down to $2,000 per person.
  • Stop borrowing money and pay off the lenders and save $1,300.
  • Ax the overseas donations and save $350.
  • Ax the Ag subsidies and save $200.

Savings = $3,300.

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12 comments on this article (post your own)

1 On Dec 1, 10:17 am, Walter Richards wrote:

“Stop borrowing, and pay off the lenders” ... Well, how much of that debt is through Treasury Bonds? As long as we have Treasury Bonds, there’ll be a national debt.


You know me. I just cut $11275 from that figure, by getting rid of unConstitutional programs.

And if we got rid of the unConstitutional programs, we could put some of the savings – from terminating federal employees – into more spent on veterans.

Also, the money from those programs could go to pay off our debt that isn’t in Treasury Bonds.

I also wouldn’t mind turning our military into a training cadre, and “brown water” navy (with the exception of our fleet of subs for deterrant). Which would result in a drastic cut to the amount spent on “war industries”. Although I’m sure some (a little) of it would be absorbed by state guard/militia.

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