In: Economics
Provide examples and Describe the various means by which the US government collects revenues and then spends or redistribute the gained revenues.Use a pie chart to illustrate the most recent distributions for the US budget
Answer :
In FY 2018, total US government revenue, federal, state, and local, was "estimated” to be $6.27 trillion, with federal $3.33 trillion; state $1.60 trillion; local $1.34 trillion(Source: www.usgovernmentrevennue.com)
Various means by which the US government Collects revenue are :
1)Income Taxes: Individual and corporate income taxes.
2)Social Insurance Taxes: FICA taxes, unemployment, disability taxes.
3)Ad valorem Taxes: Sales, excise and property taxes, licenses.
4)Fees and Charges: Fees for government services other than taxes.
5)Business and Other Revenue: Revenue from government businesses such as liquor stores and utilities.
Government revenue is collected at all levels of government: federal, state, and local. At 53 percent, the federal government collects about half of total government revenue, with states collecting 26 percent and local governments 21 percent. Overwhelmingly, the federal take is collected as income taxes and social insurance payroll taxes. State governments balance their take between income taxes, ad-valorem taxes and other forms of revenue. Local governments collect revenue from ad-valorem taxes such as property taxes and sales taxes
Total US government spending includes federal, state, and local government spending net of intergovernmental transfers.
Spending of Revenue can be categorized into
1)Pensions: Pensions, disability.
2)Health Care: Health care.
3)Education: K-12, college, training.
4)Defense: Military, foreign policy, veterans, foreign aid.
5)Welfare: Cash welfare, food stamps, unemployment benefits, workers compensation, housing, excluding health care.
6)Protection: Police, fire, law courts, prisons.
7)Transportation: Road, rail, airports.
8)General Government: Legislative, executive, finance.
9)Other Spending: Research, economic development, agriculture, energy, environment.
10)Interest: Interest on government debt.
Pie Chart to Illustrate the most recent distribution for the US Budget :( Source: www.usgovernmentspending.com/classic)
For FY 2019, the three biggest government programs (federal, state, and local) are health care, pensions, and education.
The Pie Chart shows overall government expenditures for the specified fiscal year. Spending totals are aggregated for each major government function.
For the United States, it shows spending on all levels of
government—federal spending, state spending, and local
spending.