Thursday, April 14, 2005

Tax Day Eve - How Your Tax Dollars Work

Under normal circumstances, the Heritage Foundation website is one of the last places in the cyberworld I'd send you for information on anything. But I will give the Heritage wonks this - they are true conservatives (at least in a fiscal sense), rather than the neofaux con's that populate the 495 Beltway these days.

As tomorrow's dreaded tax day approaches, an article on how George Bush's administration is spending your money finds that:

Washington will spend $22,039 per household in 2005 -- the highest inflation-adjusted total since World War II, and $4,000 more than in 2001. The federal government will collect $18,248 per household in taxes. The remaining $3,791 represents the budget deficit per household, which, along with all prior government debt, will be dumped in the laps of our children...

The five highest cost line items (excluding Social Security) out of each household's contributions are:

  • Defense: $4,451
  • Low-income programs: $3,559
  • Interest on the federal debt: $1,582
  • Federal employee retirement benefits: $838
  • Education: $627

Zero in on number 3 - the interest on the federal debt.

That's the "birth tax". Or as future financial historians may characterize it, the "Bush tax". Your children and grandchildren thank you.