Where the money comes from

The 2003 federal budget (according to the July White House Mid-Session Review) is estimated to be $1.77 trillion in receipts and $2.21 trillion in outlays (expenditures). That means a deficit of $440 billion. (The actual numbers will be available after the 2003 fiscal year ends this coming Tuesday.)

For every dollar the federal government spends:

  • 36 cents come from individual income taxes
  • 32 cents come from Social Security, Medicare and other retirement taxes
  • 6 cents come from corporate income taxes
  • 3 cents are generated by taxes on alcohol, tobacco, fuel, telephones, air transportation, etc. (excise taxes)
  • 3 cents come from estate taxes, custom duties and government fees (such as $50 for a National Parks Pass)
  • and 20 cents are borrowed from our children and grandchildren
Revised September 26, 2003