Friday, July 16, 2010

Where your income tax really goes

OK, you fiscally responsible teabaggers, tell us where to cut. But don't you dare touch defense!



Where Your Income Tax Money Really Goes FY 2009

Total Outlays (Federal Funds): $2,650 billion
MILITARY: 54% and $1,449 billion
NON-MILITARY: 46% and $1,210 billion

FY2009 federal piechart

HOW THESE FIGURES WERE DETERMINED

Current military" includes Dept. of Defense ($653 billion), the military portion from other departments ($150 billion), and an additional $162 billion to supplement the Budget's misleading and vast underestimate of only $38 billion for the "war on terror." "Past military" represents veterans' benefits plus 80% of the interest on the debt.*

The Government Deception

The pie chart below is the government view of the budget. This is a distortion of how our income tax dollars are spent because it includes Trust Funds (e.g., Social Security), and the expenses of past military spending are not distinguished from nonmilitary spending. For a more accurate representation of how your Federal income tax dollar is really spent, see the large chart (top).

the government's deceptive pie chart

Source: Congressional Budget Office for FY2008

These figures are from an analysis of detailed tables in the "Analytical Perspectives" book of the Budget of the United States Government, Fiscal Year 2009. The figures are federal funds, which do not include trust funds — such as Social Security — that are raised and spent separately from income taxes. What you pay (or don't pay) by April 15, 2008, goes to the federal funds portion of the budget. The government practice of combining trust and federal funds began during the Vietnam War, thus making the human needs portion of the budget seem larger and the military portion smaller.

*Analysts differ on how much of the debt stems from the military; other groups estimate 50% to 60%. We use 80% because we believe if there had been no military spending most (if not all) of the national debt would have been eliminated. For further explanation, please see box at bottom of page.


Are We Safe Yet?

Cost of the Iraq and Afghanistan Wars
(billions of dollars)
spending on war
source: For 2001 to 2008 from Center for Arms Control and Non-Proliferation, armscontrolcenter.org; for 2009, the Budget includes $70 billion in "allowances" for GWOT; WRL estimates an additional $130 billion will be authorized for spending in 2009 and subsequent years, making the total authorized $200 billion. This graph shows Budget Authority, while the pie on the front is Outlays.
Military spending: U.S. vs. World

U.S. Military Spending vs. The World

U.S. military spending – Dept. of Defense plus nuclear weapons (in $billions) – is equal to the military spending of the next 15 countries combined.

These numbers show military expenditures for each country. Some say that U.S. military spending will naturally be higher because it has the highest Gross Domestic Product (GDP) of any country. The United States accounts for 47 percent of the world's total military spending, however the U.S.'s share of the world's GDP is about 21 percent. Also note that of the top 15 countries shown, at least 12 are considered allies of the U.S. The U.S. outspends Iran and North Korea by a ratio of 72 to one.

Source: Center for Arms Control and Non-Proliferation,http://old.armscontrolcenter.org/archives/002279.php; our graph uses a more comparable figure of $515 from actual 2006 U.S. military spending



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