The federal government collected nearly $1 trillion more in revenue in 2022 than in 2020. Line chart of federal government revenue from 1980 to 2022 with an upward trend. In 2022, the federal government collected $5.03 trillion in revenue.
The majority of federal revenue comes from individual and corporate income taxes as well as social insurance taxes (such as the Social Security taxes described above).
In 2023, total federal receipts are projected to total about $4.8 trillion, or 18.4 percent of gross domestic product (GDP).
Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources. During FY2022, the federal government spent $6.3 trillion. Spending as % of GDP is 25.1%, almost 2 percentage points greater than the average over the past 50 years.
High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2020, the bottom half of taxpayers earned 10.2 percent of total AGI and paid 2.3 percent of all federal individual income taxes. The top 1 percent earned 22.2 percent of total AGI and paid 42.3 percent of all federal income taxes.
The $34 trillion gross federal debt equals debt held by the public plus debt held by federal trust funds and other government accounts.
1/19/24 Update: President Joe Biden signed into law a short-term funding extension on Friday, the White House announced, averting a partial government shutdown. The short-term funding extension sets up two new funding deadlines on March 1 and March 8.
As Figure A suggests, Social Security is the single largest mandatory spending item, taking up 38% or nearly $1,050 billion of the $2,736 billion total. The next largest expenditures are Medicare and Income Security, with the remaining amount going to Medicaid, Veterans Benefits, and other programs.
U.S. publicly held debt 2013-2023
In November 2023, the public debt of the United States was around 34 trillion U.S. dollars, over two trillion more than a year earlier, when it was around 31.4 trillion U.S. dollars.
The federal taxes you pay are used by the government to invest in the country and to provide goods and services for the benefit of the American people. The three biggest categories of expenditures are: Major health programs, such as Medicare and Medicaid. Social security.
To balance the federal budget, government revenue must meet or exceed government spending. That's happened only twice in the past half-century: President Lyndon Johnson did it in 1969, and President Bill Clinton from 1998 to 2001. These days, the federal budget is far from balanced.
The fact is that Congress, despite borrowing $2.9 trillion from Social Security, hasn't pilfered or misappropriated a red cent from the program. Regardless of whether Social Security was presented as a unified budget under Lyndon B.
As the chart below shows, three major areas of spending make up the majority of the budget: Social Security: In 2023, 21 percent of the budget, or $1.4 trillion, will be paid for Social Security, which will provide monthly retirement benefits averaging $1,836 to 48.6 million retired workers.
Biden signs funding bill, averting a government shutdown
President Joe Biden signed the bill, which will fund the government through early next year to buy time for spending negotiations.
Vote results
107 Republicans and 207 Democrats voted in favor of the bill, which required the support of two-thirds of the chamber as House Speaker Mike Johnson (R-La.) chose to pass the bill under the suspension of House rules to fast-track it.
Reducing the debt will require Congress to make politically difficult decisions to either curb spending, raise taxes, or both. Other experts say the United States can safely afford to continue borrowing at present levels because it pays relatively little interest due to its unique position in the global economy.
As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
The largest holder of U.S. debt is the U.S government. Which agencies own the most Treasury notes, bills, and bonds? Social Security, by a long shot. The U.S. Treasury publishes this information in its monthly Treasury statement.
What does impact your finances are federal tax brackets and there are seven of them. The lowest tax bracket is 10%. The highest tax bracket is 37%. If you're in the middle class, you're probably in the 22%, 24% or possibly 32% tax brackets.
If your income is less than your standard deduction, you generally don't need to file a return (provided you don't have a type of income that requires you to file a return for other reasons, such as self-employment income).
Walmart income taxes for the twelve months ending October 31, 2023 were $6.831B, a 80.71% increase year-over-year.