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How Uncle Sam Spends Our Taxes: The Budget in 8 Easy Bites

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How Uncle Sam spends your tax moneyBy Jerry Idaszak, associate editor, The Kiplinger Letters


Almost everyone agrees that the federal deficit is a ticking bomb. But few can agree on how to defuse it. Ideas run the gamut from raising taxes to the wholesale elimination of scores of government programs. Some are contradictory. All are controversial.

When you take a look at where the money actually goes, it's easy to see why it's hard to balance the budget.






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CaptainWhat

The T-Publicans are pushing REALLY hard for STATE control of so many issues, proograms etc because in reality STATE gov'ts can manipulate and hide wrongful use of funds and has a closer network of glad-handers etc that'll destroy many lower-middle and lower income people while schooching funds to cronies, supporters, etc .BUT, let's give them a chance to show us that's not the truth. ... $2.7 trillion in IOUs from the U.S. Treasury. The funds have been borrowed over the past two decades to pay for other federal programs.
" ... From the next 10 years federal funds to states in each years budget, Each state will pay back to Soc, Sec. 1/10th of whatever their state received from the SS fund WITH interest! Then the SS fund will be repaid and refilled,... each state can cut what they want/fund what they want withiout that repaid fed money ... Aand a new Soc Sec program to cover anyone NOT currently within 15 - 20 years of retiring under the original SS system will be ushered into the new system just for them ... redcuing their SS tax by 1/110th each year to old S.S. and switching it into THEIR NEW Soc. Sec. system ...

April 01 2012 at 4:37 PM Report abuse rate up rate down Reply
johnfortworth

The IRS sucks. Congress, according to the Constitution, must start the process of money bills and congress sure can spend it. The governmnet is suppose to be me and you. My congressman's office called the IRS about a problem and the IRS would not talk to the congressman's office. I was right there in the room. What a hoot! It is about fear. Putting fear into the taxpayer. The real problem is that the double dippers continue to get the double tax refund. I paid mine already to end the pain. I gave the IRS $24,000. If you want an audit or the IRS to mess with your return, sign the return with UCC 308-1 without prejudice below your name. From a disabled Republic of Vietnam Combat Vet.

April 01 2012 at 3:39 PM Report abuse rate up rate down Reply
ilm9p

Yeah, add up "help for low incomers", Medicaid, and at least half of Medicare and you come up with 23.2% that goes to support all the scum on welfare. I especially like the term "low incomers". Is that the latest PC definition for the scum on welfare?

March 27 2012 at 7:33 AM Report abuse +3 rate up rate down Reply
super dad

I wonder how many low level government employees could come up with money saving ideas if there was a bonus to be earned if the idea is instituted? The bigger picture to me would be to see where services are duplicated, and eliminate those. The federal department of education is one I would eliminate. That is a states job.

March 27 2012 at 6:03 AM Report abuse +2 rate up rate down Reply
f1v79

How are homeland security and defense two separate things?

March 27 2012 at 12:30 AM Report abuse rate up rate down Reply
1 reply to f1v79's comment
cpo1514

FLV... Did you not learn this is school??/ If not then demand the Federal Education Department be eliminated and let the states handle education.

March 27 2012 at 9:53 AM Report abuse +1 rate up rate down Reply
MikeC

Medicaid is particularly indefensible, so long as people just above the qualification line get the shaft.
Meanwhile others get their mortgages paid off for them. The inequities are endless.

March 26 2012 at 10:39 PM Report abuse +2 rate up rate down Reply
MikeC

It's not "Defense" -- it's "Military" ... most of it is "Offense" and most of it is counterproductive. America's endless military campaigns create generations of enemies, which have only begun to blow back. Countless lives and countless dollars thrown right down the drain.

March 26 2012 at 10:35 PM Report abuse +2 rate up rate down Reply
1 reply to MikeC's comment
cpo1514

Mike C... but wait... OMG (Obama Must Go ) is cutting a deal with the Russians to start in his second term... we will give up all current defense & freedoms to Russia for complete Socaialism in the former USA.

March 27 2012 at 9:55 AM Report abuse +3 rate up rate down Reply
bggdg

The only thing in the entire budget that is impossible to cut is interest on our debt, which accounts for 6% of the total. All the rest can at least be cut, and many items should be eliminated.

March 26 2012 at 9:46 PM Report abuse +2 rate up rate down Reply
ajt1025

If the Government would not have stolen the money from SS fund it would be ok for many, many years to come. Our Politiciant have bilked the SS fund since D.D, Eisenhower to pay off the Korean debt. Since them the Congress changed the laws to make the SS fund their private spending. Now they say it will go broke in 2031, if they put back the 5 trillion that they took from the fun it would not run out at all. It is the people's money not the politicians but they made it their's leaving the people hoping that it will be there when they need it. Tax and spend and giving people money who did not put in one dime into the fund will drain it dry. We don't have any say the Politicians just do as they please. Keep giving our money to others and support people that don't deserve a dime, but that is our liberal government. On the other side the GOP hates and has always hated SS, but it seems they don't have any problems takeing from it.

March 26 2012 at 8:11 PM Report abuse +3 rate up rate down Reply
1 reply to ajt1025's comment
bggdg

Ther US Treasury has repaid trillions of dollars worth of IOU's, representing funds borrowed from Socialist Insecurity, never having missed a single interest or principal payment.

Had this money have been kept in cash instead of being lent to the treasury, no interest would have been earned on the Trust Fund, making the catasrophic financial condition of Sopcialist Insecurity even more dire.

March 26 2012 at 9:36 PM Report abuse -1 rate up rate down Reply
golfinkatiekat77

I could tell you stories that would make your hair curl about careless spending here in the government. Like this, Federal associates in the office where I'm assigned as a contractor have a summer picnic and a holiday party each year. Now, as contractors, if we want to participate, we must either take the time off as unpaid or use one of our precious vacation days. HOWEVER, if one of the Federal associate wants to attend these parties and they are located out of town, they are flown to the city where the party is, given rental cars, and put up in a nice hotel for 2-3 days!!! Heck, I even had to pack and ship their holiday gifts via Fed Ex because they didn't want the hassle of taking them on the plane with them!!! They use disabled people as contractors to do the "dirty work" or the administrative work they don't know how. THEN, when the budget gets too tight from them financing these trips and buying unneeded GPS units, they throw us out into the street! Even if we apply for a job, we won't get even considered! Why? Because we're not veterans. Why are we not veterans? Because we have a disability! It's crazy to hire a "receptionist" to answer the phones and have to pay $42.00 an hour for her. Now, she doesn't get that kind of money, she is lucky to receive $10.00 an hour, no sick leave, minimal vacation time and expensive insurance! There is so much waste going on here, I can only imagine what it's like when you combine all the federal agencies together!

March 26 2012 at 5:50 PM Report abuse +3 rate up rate down Reply
1 reply to golfinkatiekat77's comment
wbischo

When Government associates plan annual parties, they also plan how it will be paid for. Each person signs up and pays a fee based on how many will attend and the total anticipated cost. If you were invited, of course you would have to take time off work, AND SO DID THEY. I once worked for the Government, and believe me I got nothing ''free''. I even paid for meals I ate in a mess hall which was set up to train military chefs, allowed Govt employees to eat the the meals they produced. Holders of Federal jobs are NOT given rental cars, free air fare, nor free hotel rooms. Not even the President. As you can see in his vacation announcements, he is charged the usual fees for civilian accommodations, because all these businesses are ''for profit'' organizations. The Presidents usually use their own money for this, and the Federal Government pays for their security detail. Someone on this forum claims that Mrs Obama spends our tax dollars on ''making herself look good''. This 1st Lady, shops at some of the same stores which I shop in myself, and I can guarantee that they are not that expensive. Do you think she actually sends a Bill to the National Treasury? Designers of high end clothing lines, probably OFFER to make Michelle's clothes just for the ADVERTISEMENT and publicity they receive if she accepts their offers, but I believe she more often pays for the clothes herself. The ONLY waste which I saw first hand was the huge amount of money paid to CONTRACTORS such as yourself, who greatly overcharged for their good and services, and the Government had to pay such charges because they took ''bids' and had to ''award'' a contract to get what they needed. When I was hiring personnel for vacancies where I worked, we were supposed to give priority to Veterans, AND to the disabled. My own father worked in a government job most of his life while his brother was frequently laid off in bad economic times'. My father was crippled, but his brother WAS NOT DISABLED. So bottom line is, I don't think you did any research on the things you are complaining about. The contract work is also given to both Vets and the disabled on the same type of priority basis as well as lowest bids. I don't know which ''receptonist'' you have seen being paid forty two dollars an hour, but Civilian Jobs in the Government are noriously paid very low hourly wages. Look up the pay schedule for the various t ypes of pay grades. Contractors which Bush gave work to in Iraq were given the Contracts without going through the usual process, and he gave them to his own cronies BEFORE he asked Congress to approve his invasion.

March 27 2012 at 4:19 AM Report abuse rate up rate down Reply