Where our taxes go and other fun tax graphics

April 19, 2012

Everybody recovered from their Tax Day hangovers? Good!

How about some post-filing fun? Check out the chart below from the Center on Budget and Policy Priorities detailing where the money we pay Uncle Sam goes:

Where taxes go_CBPP

That's just one of the Center's top 10 tax-related charts that the nonprofit put together for Tax Day 2012.

"Together, [the 10 charts] provide useful context for the coming debates about how to reduce soaring budget deficits and reform the tax code," says Chuck Marr, director of Federal Tax Policy at the CBPP.

But the graphic fun doesn't stop there.

Derek Thompson, senior editor at The Atlantic, says taxes are awesome. He explains:

"If you care about national values, or the relationship of citizens to their government, or the way we choose to award and discourage behavior, there is nowhere better to start than the gnarled and fascinating world of levies and tax breaks. Tax week gives American families a reason to consider moving to Bermuda, but it also gives me an excuse to spend the day finding my favorite, most controversial, and most illuminating graphs about taxes."

Thompson found 11 tax charts, including the CBPP visual above. One of my fave's from his collection is via The Economist using data from KPMG.

Economist effective personal income taxes

As you can see, effective tax rates in the United States are less than Australia, Canada and just about every country in Europe except, of course, those secret bank account folks in Switzerland.

As we now focus on our 2012 taxes, give the graphics a look see. They could come in handy as we focus on the presidential discussions (yeah, let's be optimistic that we can talk about it like grownups) about taxes and our 2012 IRS bills.

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Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

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The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Callpills Pharma Inc

    Nice post!!!!
    I like this post so much.Thanks for the share!!!

  • Pacioli

    The title of this post is incredibly misleading.
    The graph of federal spending distribution is just that – where the spending goes. It is unequivocally NOT related to taxes.
    I clicked on the first link in the post, and this was the first sentence:
    “The federal government collects taxes in order to finance various public services.”
    Which of course is completely false. The federal gov’t does not need to ‘finance’ anything. It is a the monopoly issuer of its currency. For someone who runs a tax-related blog, it seem irresponsible to promulgate such misinformation regarding what taxes are and what they are not.

  • Bob C.

    I question those effective tax rates. It seems they include Federal and State income taxes, but what about local taxes? Property taxes in high tax states are often $10,000 a year or more. What about local sales taxes? Excise taxes? Etc, Etc.
    We pay a heck of a lot more in taxes than we realize.

Comments are closed.