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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.

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.)

Comments
  • 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.

  • 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.

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