The average American family’s tax bill has increased by a massive 41 percent and now pay over more money to the government than what they spend on food and clothing combined, new official figures from the Bureau of Labour Statistics (BLS) have revealed.
According to the BLS (“Consumer Expenditures—2016,” August 29, 2017) statement, the average tax bill for American “consumer units”—that is, family units—increased from $7,423 in 2013 to $10,489 in 2016.
In 2016, there were 129,549,000 “consumer units” in the United States. The average before-tax income of an American consumer unit was $74,664 for the year. The consumer unit then paid an average of $10,489 in personal taxes—including $8,367 in federal income taxes, $2,046 in state and local income taxes, and $75 in other taxes.
Three years before that, in 2013, there were 125,670,000 “consumer units” in America. The average before-tax income of these consumer units that year was $63,784. In 2013, consumer units paid an average of $7,432 in taxes—including $5,743 in federal income taxes, $1,629 in state and local income taxes, and $60 in other taxes.
From 2013 to 2016, overall personal taxes therefore climbed from $7,432 to $10,489—an increase of $3,057 or 41.13 percent. Federal income taxes climbed from $5,743 to $8,367—an increase of $2,624 or 45.7%.
State and local income taxes climbed from $1,629 to $2,046—an increase of $417 or 25.6 percent. Other taxes climbed from $60 to $75—an increase of $15 or 25 percent.
American “consumer units” only spent $1,803 on “apparel and services” (clothing) in 2016 and $7,203 on “food.”
According to official government figures, the federal budget for fiscal year 2018 (October 1, 2017, to September 30, 2018) is $4.094 trillion.
“Social Security” costs the most at $1.005 trillion, while Medicare ($582 billion) and Medicaid ($404 billion) are the next largest expenses.
Other mandatory programs—such as food stamps, Unemployment Compensation, Child Nutrition, Child Tax Credits, Supplemental Security Income and Student Loans cost $544 billion.
All of this together means that “social welfare” in one form or another, costs $2.535 trillion.
The rest of the Federal budget is allocated as follows:
1. Interest payments on the national debt amount to $315 billion for FY 2018. 2. The discretionary budget is $1.244 trillion, which pays for everything else, including “foreign aid” of all sorts.
3. There is an additional fund for emergencies. Congress allocates this outside of the budget. For FY 2018, the emergency fund is $85.3 billion. The largest component is for Overseas Contingency Operations (OCO), which is code for wars.
4. When OCO funding is included, the American government spends $824.7 billion on military spending. This includes the Defense Department base budget of $574.5 billion; the DoD Overseas Contingency Operations budget of $64.6 billion; and the budgets of departments that support defense (Veterans Administration, State Department, Homeland Security, FBI and Cybersecurity and the National Nuclear Security Administration) which amount to a further $173.6 billion.
5. The Health and Human Services budget—which runs Medicare, Medicaid and the Affordable Care Act, has a budget of $65.3 billion.