You might have guessed it… the largest portion is Social Security & Medicare. Followed by social programs, national defense, community development, interest on debt, and finally law enforcement.
33% to Social Security & Medicare, & other retirement:
These programs provide income support for the retired & disabled & medical care for the elderly.
25% to social programs:
18% to Medicaid, SNAP, Temporary Assistance, etc.
7% for Health Research, Unemployment, Public Health Programs, Assisted Housing, & Social Services.
17% to National Defense, Veterans, & Foreign Affairs:
12% to fund National defense activities like to equip, modernize, & pay our armed forces.
4% for veteran services & benefits.
1% for international activities & the maintenance of US Embassies abroad.
14% Physical, Human, & Community Development such as:
Agriculture, natural resources, environment, transportation, education, community development.
Space, energy, & general science.
7% Net Interest on the Debt
3% Law Enforcement & General Government
How do these get decided?
Before the first Monday in February the president is required by law to submit to Congress a budget proposal before the fiscal year that begins in October. Congress then reviews the proposal & makes changes.
How does the US generate income?
42% Personal income taxes
24% Social Security, Medicare, Unemployment, & other retirement taxes
22% Borrowing to cover deficit
7% Corporate Income Taxes
6% Miscellaneous Taxes
In fiscal year October 1, 2021 through September 30, 2022, federal income was $4.897 trillion and outlays were $6.273 trillion. Leaving a deficit of $1.376 trillion.
*Numbers might not total 100% due to rounding.
Information cited from:
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