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Policy: Entitlements

How the federal government spent the average American’s taxes in 2012

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Politics,Beltway Confidential,Conn Carroll,Taxes,Entitlements

In honor of tax day, the White House has produced a Federal Taxpayer Receipt calculator that allows users to enter in an income level and see how the federal government spent their tax dollars.

In 2012, the Census Bureau estimated that the median household income in the United States was $50,054. Using that level of income for a married coupled with one minor produces the following tax bill.

If you look at the graphic quickly you might think that almost one-quarter of the average American’s tax bill is spent on National Defense. But that is not true. Only one-quarter of their income tax is spent on National Defense. When Social Security and Medicare taxes are accounted for that percentage shrinks to just 6.4 percent.

Here is how the federal government spent the average American’s taxes in 2012 in percentage terms.

Note that more than 80 percent of the average American’s taxes go to our nation’s big three entitlement programs: Social Security, Medicare and Medicaid.

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