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Wednesday, December 3, 2014

If you make $50,000 per year, you pay....

This was posted by a FB friend.
Let's look at the real numbers. Please note that the above post is calculating the allocation of taxes paid for wage earners at a specific level of income, while I am calculating the burden of government for the entire population. Of course, my method makes it even worse for the those who are making these claims.

First claim, that it costs $247.75/yr for defense. Actual budget for defense is $839.9 billion (shown below). With a population of 322.4 million, that works out to about $2605 for every person in the US, per year.

Second claim, $3.98 for FEMA. FEMA's budget request for 2015 is $10.38 billion, which works out to $32 per person, per year. 

Third claim, $22.88 for unemployment insurance. Montana unemployment tax rates are found here on page 16. The average tax rate is 1.92%, which for a $50,000 wage is $960. Federal spending on unemployment insurance was $93 billion in 2012, which equals $288 per person, per year.

Fourth claim, $36.82 for SNAP. Total federal spending for SNAP in 2011 was $78 billion, which is $241 per person, per year.

Fifth claim, $6.96 for welfare. According to the below pie chart, 10% ($390 billion) is spent on welfare, which equals $1209 per person, per year.

Sixth claim, $43.78 for government pensions. From the chart below, that amount is $969.7 billion, which is $3007 per person, per year.

Seventh claim, $235.81 for Medicare. Planned spending for 2015 is $530 billion, which equals
$1645 per person.

For the eighth claim, it's difficult to know what is being measured. I presume it is tax breaks for corporations. We need to note that every tax dollar paid by corporations filter down to the end user, you and I. Taxes are simply another expense included in the price of the products and services you and I purchase. All taxes are paid by people. Nothing is or can be paid by corporations.

One final note. The total planned spending for 2015 is $3.901 trillion. That is $12,100 per person, per year. If the point of the post was to point out how cheap government is and how evil corporations are, well, we can see that this is just not the case.
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GDP: $18,219.4 bln
GO:
$32,178.5 bln


United States Federal
State and Local Government Spending
US CA >
Pop: 322.4 million
-5yr -1yr   Fiscal Year 2015 in $ billion   +1yr +4yr
View: people old default radical census programsaltprog COFOGFedGov.
Xfer
StateLocalTotal
[+] Pensions 969.7 0.0 221.2 47.1 1,238.0
[+] Health Care 1,044.5 -358.1 499.5 146.4 1,332.4
[+] Education 130.7 -69.3 301.0 692.7 1,055.1
[+]
Defense 839.9 0.0 0.7 -0.1 840.6
[+] Welfare 385.8 -113.2 142.8 80.5 495.9
[+] Protection 34.1 -5.1 70.2 165.4 264.6
[+] Transportation 97.8 -67.0 127.2 162.2 320.2
[+] General Government 49.7 -4.1 52.9 71.3 169.7
[+] Other Spending 97.0 -16.3 70.6 326.7 478.1
[+] Interest 251.9 0.0 50.7 66.9 369.4
[+] Balance 0.0 0.0 0.0 0.0 0.0
[+] Total Spending:  Start chart 3,901.0 -633.1 1,536.8 1,759.1 6,563.8
[+] Federal Deficit 563.6 0.0 0.0 0.0 563.6
[+] Gross Public Debt 18,713.5 0.0 1,227.7 1,956.2 21,897.3

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