Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their money.
The average household spends more on taxes than groceries, clothing, or healthcare. In fact, on average, 11% of our income goes to personal income taxes, which don’t include sales tax, property tax, Social Security payments, or Medicare payments. So what do we get in return?1
The accompanying chart breaks down the $6.27 trillion in federal spending for 2022 into major categories. One of the biggest categories is Social Security, which consumes almost one-fourth of the budget. Safety net programs, which include food assistance and unemployment compensation, take another 11%. Defense and related items take 18% of the budget, and 24% go to Medicare and health programs.2
Are taxes one of your biggest budget items? Take steps to make sure you’re managing your overall tax bill. Please consult a tax professional for specific information regarding your individual situation.
Pieces of the Federal Pie
More than 60% of 2022 federal spending was used for Social Security, Medicare, defense, and related programs.
Source: Treasury.gov, 2022
- ValuePenguin.com, September 1, 2022
- Treasury.gov, 2022
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
To better serve you, I have provided a link below called the 2022/2023 TAX SEASON GUIDE; click on the link to learn more. Dixon Financial Group cannot give tax advice, but we are here to guide you through the process regarding your investments and provide suggestions now to help reduce your tax liability in the future. Please call the DFG Team so we can answer your questions, and let us be a part of your retirement journey.
David S. Dixon, CFP®