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April 16, 2003

Tax and Spend

I was doing my taxes today (I filed for an extension). When I downloaded the instructions for a 1040 I found these graphs explaining how the government collects and spends your money:

income.gif     outlays.gif

I see reports on taxes and spending all the time and it is nice to see all the actual numbers. I am amazed how much we are spending paying down the debt (thanks Ronnie and now Bush). Also it seems social security can only get bigger as the baby boomers retire.

Posted by Jeremy at 12:54 AM | Link | TrackBack (0)


Comments

Good graphic! As you say, nice to see the actual figures once in a while.

The income chart is excellent. I can't believe corporate income tax rates are so low, particularly when so much of the government budget is directly handed back in corporations. When this is factored in, it is clear that there is a quite direct transfer of wealth from taxpayers to corporations.

The outlays chart, however, is confusing. First off, why aren't "interest on the debt" and "paying down the debt" at least put next to each other? This totals 16% of the pie right off the top is a social progam for the rich.

The rest of the categories are highly misleading. "Physical, human, and community development"(10%) is just a mishmash. It includes agricultural subsidies, infrastructure, education, job training, housing, and "space, energy, and science" programs. Defense (12%) dominates it's wedge, and completely confuses the categories "veterans" (2%) and "foreign affairs" (1%). A lot of the "social programs" (18%) wedge goes directly to the medical industry, through Medicaid and health research and public health programs.

Of course, the biggest support for the mammoth Medical Industry comes out of the "medicare + social security" budget (36% total). Only part of this piece ever makes it to old people through SSI, and as it is paid out irrespective of need, much of this goes into bolstering the lifestyles of the comfortably wealthy as they age (so much so that the poor elderly have to have a special disbursement of "supplemental security income," which is categorized under "social programs").

All in all, "social security" is a ruse to cover the merciless extraction of income from the working poor, which is then redistributed largely to the medical establishment. I sure want to "fix" social security, like fixing a cat. Slash benefits to nothing for those who have enough money to live comfortably, only support the aged who can barely get by.

Posted by: sam from here at April 19, 2003 12:57 AM | link

The charts are, as I said, from this IRS document. I colored up the graphs, but the positions of the elements is the same. I suspect they put them where they did for visual clarity; I doubt the positions mean anything.

The document also describes the elements, something which I chose not to reproduce. For example "Physical, human and community development" is described as:

These outlays were for agriculture; natural resources; environment; transportation; aid for elementary and secondary education and direct assistance to college students; job training; deposit insurance,
commerce and housing credit, and community development; and space, energy, and general science programs.

I agree with you about social security and I just want to point out how much worse it is going to get as the baby boomers retire. Plus we will have to pay even more in interest for the debts Bush is piling on.

Posted by: Jeremy from here at April 25, 2003 07:30 PM | link

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