United States Income and Expense for Fiscal Year 2010

It’s good to be right – but I really wish I weren’t! The chart speaks for itself:

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(Just in case it is too small to read – click to read the source article).

Turns out – it’s not Social Security that is breaking the budget, or earmarks, or spending on crazy things. It’s the fact that we spend a LOT more than we earn. Defense spending, Medicare and Unemployment Insurance are the primary drivers of our spending.

And our income comes mostly from individuals – and the Social Security income funds our current Social Security obligations – so – call it a wash.

 

Income:

ITEM AMOUNT Percentage
Individual income tax $899B 41%
Social insurance tax $865B 40%
Corporate income tax $191B 9%
Other $208B 10%

Expense:

ITEM AMOUNT Percentage
Social Security $707B 20%
Medicare and Federal Medicaid $742B 22%
Unemployment insurance and other entitlements $553B 16%
Defense $694B 20%
More defense $431B 12%
Discretionary one time items $152B 4%
Interest payments $196B 6%

You can see that Social Security gets lumped in with the rest of the “entitlement” programs –and that isn’t accurate. Social Security is funding itself, and while if we don’t’ adjust a bit – we’ll run out of money in oh, 25 years or so – it is very solvent.

I’ll also note that if you consider that individual income tax and at least half of the social insurance tax comes from individuals (about 61%) – it just isn’t true that corporations are footing the United States tax bill. Individuals are.

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