During the 2017 fiscal year, the U.S. took in $3.3 trillion in taxes and fees, while spending $4 trillion, resulting in a deficit of $666 billion.
That deficit equates to about $33,000 per U.S. household, which is almost a record. However, the government will only collect $26,000 per household.
The resulting offset of almost $7,000 per household will bring the total debt to about $170,000 per household.
So, unless something changes, taxes will increase. But that’s for another post.
Right now, I want to tell you how Washington will use your tax dollars in 2018. I mean, don’t you want to know how your household’s $33,000 will be spent? Here are the major spends:
A few observations…
The Social Security and Medicare number is interesting because the typical couple will receive 13 percent more than they contribute, and their medical benefits will be valued at more than three times the value of their contributions. Sounds like a path to disaster.
Defense spending now is not as high as during the Cold War ($6,500 per household), but it’s risen in recent years.
The national debt interest hurts, but it’s going to get worse as the debt rises. By 2028, this line item could reach $6,000 per household – or double that if rates increase.
I’ll just say this – it’s not the budget I would draw up for my household.