Wondering Where Your Tax Dollars Go?

Pieces of the Federal Pie

Taxes are one of the biggest line items in most people’s budgets—yet for many, it’s still a black box. Where does all that money actually go?

On average, households send more to taxes than they spend on groceries, clothes, or healthcare. Roughly 11% of our income goes to personal income taxes alone—and that doesn’t even include sales tax, property tax, Social Security, or Medicare. So what’s the return on that outlay?

For 2024, the federal budget clocks in around $6.8 trillion. Here’s the high-level allocation:

• Social Security: ~22% of total spending
• Medicare: ~13%
• Defense: ~13%

If taxes are one of your biggest expenses, treat them like one—plan proactively. Smart moves today can help manage your total tax burden over time. And because everyone’s situation is unique, loop in a qualified tax pro to get guidance tailored to you.