A forum by which alumni of our high school political club can continue to share insights into American politics
Saturday, November 6, 2010
Where do your tax dollars go?
I have written about understanding income taxes before, using the "tax receipt" idea from Third Wave. Here is another good example from the WSJ 11/6/10 (http://online.wsj.com/article/SB10001424052748704506404575592900454547226.html?KEYWORDS=laura+saunders). As we discussed last Thursday, all of the expenditures below SS, Medicare/Medicaid, interest on debt, and the military (called "non-military discretionary spending) only account for 17% of spending. If you cancellled them all, you would barely cover 1/2 of this year's deficit.
This is a good place to note that there are 7 different ways that income is taxed at the federal level: income from work (to which 3 different tax schemes are applied: federal income tax, Social Security, and Medicare), income from interest, income from dividends, income from investments and then all of these combined under another tax scheme, the Alternate Minimum Tax.
Labels:
federal spending,
taxes
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