The Government has no money, so how does it operate?

The Government has no money, so how does it operate?

From the Center on Budget and Policy Priorities

Where does the government get the money it spends?

• ·        Almost half of all federal revenue 47 % comes from individual income taxes. 
• ·        Another 33 % of revenue comes from payroll taxes, which are assessed on the wage or salary paychecks of almost all workers
• ·        Corporate income tax is 11% and the other 9% are other sources of tax revenue include excise taxes, the estate tax, and other taxes and fees.

Where does the taxpayer’s money go?

• ·        The government spends about $3.7 trillion, over $3.2 trillion was financed by federal revenues. The remaining amount ($438 billion) was financed by borrowing. 
• ·        $888 billion or 24% is paid out through Social Security benefits to 2.3 million spouses and children of retired workers, 6.1 million surviving children and spouses of deceased workers, and 10.8 million disabled workers and their eligible dependents; a total of 19.2 million people.
• ·        Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), and Affordable Care Act (ACA) marketplace subsidies — together accounted for 25 %, or $938 billion.
• ·        Defense and international security assistance (includes the cost of supporting operations in Afghanistan and other related activities, described as Overseas Contingency Operations): Another 16 percent of the budget, or $602 billion
• ·        Safety net programs: About 10 percent of the federal budget in 2015, or $362 billion
• ·        The federal government must make regular interest payments on the money it borrowed to finance past deficits— these interest payments claimed $223 billion, or about 6 percent of the  Budget.
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