Did you know that every two years, the IRS publishes the Income and Outlays of Government Spending? It's tucked in the back of the annual 1040 filing instructions. (It's something you won't find by filing your taxes online with TurboTax.)
I decided to look back in time and see some trends in Government spending and (admittedly), I only went as far back as 2006.
In 2006, this was with George W. Bush as President. It was after 9/11, but it was also a time where President Bush was moving his "Home Ownership" agenda forward, which (directly or indirectly) created the housing bubble.
The most noticeable categories here:
Borrowing to cover deficit: 9%
Corporate Income Taxes: 13%
In 2008, we were beginning to see the effects of the Great Recession as the report cut-off date was September 30th, 2008. This was an election year and President Obama was not yet elected.
The most noticeable categories and changes were:
Borrowing to cover deficit: 15% (6% increase from 2006)
Corporate Income Taxes: 10% (3% difference from 2006)
Social Security & Medicare Taxes (F.I.C.A.) Taxes: 30%
SPENDING: Social Programs (Medicaid, Food Stamps, etc.): 20%
In 2010, the recession was fully under way. We had bank bail-outs, Wall Street bail-outs, massive layoffs, still paying for the war in Iraq and Afghanistan. The Affordable Care Act (Obamacare) was signed into law March 23, 2010. I remember that day was when the national debt increased by $6 TRILLION by the passing of that law.
The most noticeable categories and changes were:
Borrowing to cover deficit: 37% (more than double from 2 years prior)
Corporate Income Taxes: 6% (down 4%)
Social Security & Medicare Taxes (F.I.C.A.): 25% (down 5%)
Personal Income Taxes: 26%
SPENDING: Social Programs (Medicaid, Food Stamps, etc.): 25% (5% basis points increase; increased by 25%)
In 2012, I can only assume (without looking it up right now) that there was some tax bracket changes. Notice the borrowing went down (slightly) and the tax increase.
The most noticeable categories and changes were:
Borrowing to cover deficit: 30% (down 7%)
Corporate Income Taxes: 7%
Social Security & Medicare Taxes (F.I.C.A.): 24%
Personal Income Taxes: 32% (up 8%)
SPENDING: Social Programs (Medicaid, Food Stamps, etc.): 21% (down 4%)
In 2014... well, it was more of the same.
The most noticeable categories and changes were:
Borrowing to cover deficit: 14% (down 16%)
Corporate Income Taxes: 9%
Social Security & Medicare Taxes (F.I.C.A.): 29% (increase of 5%)
Personal Income Taxes: 40% (up another 8%)
In 2016, this was an election year, but President Obama is still the President.
The most noticeable categories and changes were:
Borrowing to cover deficit: 15%
Corporate Income Taxes: 8%
Social Security & Medicare Taxes (F.I.C.A.): 29%
Personal Income Taxes: 40%
In 2018, President Trump was in office, but his tax reforms had NOT YET been passed as of the time of this report.
The most noticeable categories and changes were:
Borrowing to cover deficit: 19% (increase of 4%)
Corporate Income Taxes: 5%
Social Security & Medicare Taxes (F.I.C.A.): 28%
Personal Income Taxes: 41%
So, what's the point? What are you getting at?
The Federal Government, its spending, and its taxes has FAR more control over our economy than one may realize.
Many of these things COULD have been avoided by government: Iraq & Afghanistan War, Affordable Care Act, Bailing out banks, Wall Street, and even Detroit (although they did pay it all back + interest).
Do you think taxes will go HIGHER in the future?
Do you believe taxes will go FAR higher in the future?
Do you want to PAY those taxes?
If we could remove the taxes from your retirement savings plan... how much longer would your money last you?