Since taxes will be a big topic this, thought we’d put things in perspective.
Americans pay a tad over $5 trillion in taxes to the Feds, States and Local Governments.
Technical note: In government parlance, the taxes are called “revenue”.
By taxing authority
Drilling down, the $5 trillion is split roughly 50%-30%-20% to the Feds, States and Locals, respectively
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How do the totals breakdown by type of tax?
By type of tax
Roughly 1/3 of the $5 trillion is income taxes individual and corporate)
… about 1/4 is ad valorem taxes (think sales and property taxes)
… just under 1/5 are social insurance (i.e. Social Security, Medicare, Medicaid)
… slightly more than 1/5 are fees and charges (think tolls, business licenses)
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Income taxes
Roughly 1/3 of the $5 trillion – about $1.8 trillion — is income taxes
… 83.4% are individual income taxes; only 16.6% are corporate income taxes
… about 80% of income taxes go to the Feds; around 20% goes to the States & Locals
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Ad-valorem taxes
Roughly 1/4 of the $5 trillion in total taxes paid – about $1.2 trillion – is ad-valorem taxes – taxes paid based on the value of something bought or owned.
… about 40% of ad-valorem taxes are Local property taxes
… about 1/3 are Sales Taxes … going mostly to the States
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Social Insurance
Roughly 1/5 of the $5 trillion in total taxes paid – about $961 billion – is social insurance – with about 80% going to the Feds
… roughly 60% of the social insurance payments going to the Feds is for Social Security
… almost 1/4 of the social insurance payments going to the Feds is for Medicare.
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Pulling it all together Ken’s Rosetta Stone of Taxes
All the details — now much? to whom? for what?
Click for a PDF: Ken’s Rosetta Stone of Taxes
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