top of page

Government Spending Trends

Writer's picture: David H. Kinder, RFC®, ChFC®, CLU®David H. Kinder, RFC®, ChFC®, CLU®

Updated: Jan 18, 2023


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?

  1. The Federal Government, its spending, and its taxes has FAR more control over our economy than one may realize.

  2. 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?



50 views
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube
  • TikTok
  • Podcast on Spotify!
  • Apple Podcasts
  • iHeart Podcasts!
  • Amazon Podcasts

Phone & Text:

(951) 313-8208

Regulatory Disclosure: Not Legal, Tax, or Securities Investment Advice:

The material discussed on this web site is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice, nor does it represent any specific company or specific products.  David H. Kinder, RFC®, ChFC®, CLU® is not registered nor licensed as a Registered Investment Advisory Firm (RIA), Investment Advisor Representative (IAR), nor as a Registered Representative (RR) with any broker/dealer firm, and is therefore not registered with, or supervised by, the U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), or any state securities regulatory office.  As such, David H. Kinder, RFC®, ChFC®, CLU® does not provide investment advice, specifically: buying, selling, holding, risk analysis, or any other analysis of securities, nor the asset allocation of securities portfolios. For specific investment advice on your securities investment portfolio, please contact a licensed and registered investment professional in your state.

David H. Kinder, RFC®, ChFC®, CLU® does offer general investment information for educational purposes and may propose alternative financial strategies that do not contain or include securities. He does also discuss the pros and cons of various kinds of accounts (such as IRS regulated retirement plans) and is considered incidental advice surrounding various strategies and solutions, but does not necessarily constitute advice on the underlying securities.  

 

For tax or legal services and advice, please consult a licensed professional in your state.  Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary and the information should be relied upon only when coordinated with individual professional advice.

David H. Kinder, RFC®, ChFC®, CLU® is a life, accident & health insurance agent in California (CA Insurance License #0E54187) and can easily be licensed to do business in other states.   

David Kinder Insurance and Financial Wealth Solutions is the marketing name for David H. Kinder, RFC®, ChFC®, CLU® and is not affiliated with any other company. 

David Kinder Financial Consulting and Analysis Services offers separate financial analysis services that may be appropriate, offered by engagement agreement, and on a fee-for-service basis that does not offset commissions earned through product placement.  Any recommendations through these services can be implemented with any licensed professional the client chooses, including David Kinder Insurance and Financial Wealth Solutions.

 

Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Guarantees do not apply to the performance of any particular index option on fixed indexed insurance contracts, or on projected dividends on participating insurance contracts.  Planning results are not guaranteed and are subject to individual situations and circumstances. Listing company client access links under the "Client Access" menu does not constitute any endorsement, filing, or approval of this website or its content by such listed companies.  Client access links are provided for client convenience only.

The RFC® designation is conferred and issued by the International Association of Registered Financial Consultants (IARFC) and is used by permission.  
The marks of CLU® and ChFC® are the property of The American College of Financial Services, which reserves sole rights to its use, and is used by permission.  

© David Kinder Insurance and Financial Wealth Solutions; All Rights Reserved

Privacy Policy | Accessibility Policy

bottom of page