Where Do Our Tax Dollars Go?


 

Publication Date: April 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Matt Fiedler

Research Area: Banking and finance

Keywords: Economic projections; Fiscal future; Federal budget

Type: Report

Abstract:

Since the government collects taxes in order to finance public services, it is useful to examine where tax dollars go when thinking about these crucial tax-policy decisions. All told, the federal government spent a bit less than $2.7 trillion in fiscal year 2006, representing about one-fifth of the nation’s Gross Domestic Product (GDP) or slightly less than the historical average for the last three decades. About three-fifths of federal expenditures went to three areas, each of which comprised about one-fifth of the budget."