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How Uncle Sam spends our tax dollars

November 7, 2010

In preparation for the upcoming Congressional debates on federal spending, check out this graphic on how Uncle Sam spends our tax dollars.

Tax_spending_MyBankTracker
Get a larger view by clicking on the image.
You might have to click it again once it opens in another window.

This infograph by MyBankTracker.com was created using the 2009 Budget from the White House website. To calculate the specific subhead numbers, estimated projections based on The Spending Outlook found on the Congressional Budget Office website were used.

As the image shows, government spending can be broken down into three categories: mandatory spending, discretionary spending and interest.

It's in the discretionary sector that lawmakers have the most flexibility, deciding the money needed for different programs under security agency spending and non-security agency spending.

If Congress is serious about keeping the current tax cuts in place, Representatives and Senators are going to be haggling over which programs to fund at what levels.

And I suspect that when push comes to shove, some lawmakers are going to try to recharacterize some discretionary funding as, at least politically, mandatory.

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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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