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What do your Taxes Pay For?

What do your Taxes Pay For?

March 01, 2024

Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their money.

The average household spends more on taxes than on groceries, clothing, or healthcare. In fact, 11% of our income, on average, goes to personal income taxes, which doesn’t include sales tax, property tax, Social Security payments, or Medicare payments.

So what do we get in return?

In 2022, the largest category of the $6.27 trillion in federal spending was Social Security, which consumed almost one-fourth of the budget. Safety net programs, which include food assistance and unemployment compensation, took another 11%. Defense and related items took 18% of the budget, and 24% went  to Medicare and health programs.

Are taxes one of your biggest budget items?

Take steps to make sure you’re managing your overall tax bill.

At IFG, we are here to help.  Schedule your appointment today.