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How Uncle Sam is spending your tax dollars

April 21, 2022

Tax_dollars_2022_Tax_Day_receipts_National-Priorities-Project

Every Tax Day, millions of Americans complain about how much money they hand over to the U.S. government and how Uncle Sam spends it. OK, that’s every day. But seeing the actual personal numbers on Form 1040 tends get people to focus.

That’s why the National Priorities Project (NPP), a Northampton, Massachusetts-based nonprofit that for almost 40 years has analyzed federal revenue and spending data, issues an annual receipt of where our tax dollars, primarily from individual income taxes, go.

Sources of federal revenue-jpg

Source: NPP and White House Office of Management and Budget (OMB)

 

Coronavirus shift: The military usually commands a major portion of our tax dollars. But due to (you guessed it) the COVID-19 pandemic, more than usual amounts last year went to health, unemployment, and labor, writes Ashik Siddique in NPP’s blog post Tax Day 2022: We Got The Receipts.

The NPP image topping this post shows the break out, as does the more spread out vertical version below.

Tax_dollars_2022_NPP_vertical

More and less spending: NPP was founded in 1983 to evaluate money lost in social spending in western Massachusetts under the tax and spending policies of the Ronald Reagan administration. That focus remains and is evident in the following Tax Day 2022 numbers highlighted by the group.

Its latest receipt, says NPP, shows the average taxpayer paid —

  • $929 just for Pentagon contractors in 2021, representing 18 days of work. That’s nearly half the total contribution for the military, and it’s more than five times the amount the same taxpayer contributed to K-12 education, $171.
  • $62 for nuclear weapons, and just $27 for the Centers for Disease Control and Prevention (CDC).
  • $62 for deportations and border control, versus just $5 for renewable energy.
  • $18 for federal prisons, and just $7 for anti-homelessness programs.

If you want to see how your taxes were spent based on NPP’s analysis, check out the group’s personalized interactive online tax receipt tool. You also can get a look at the average tax receipt for your state.

And if you don’t like what you see, NPP lets you see what your tax receipt would look like if you, not Congress or the White House, made federal spending choices.

You also might find these items of interest:

 

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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