Next Years Tax Bill

Next years federal budget (FY 2010) was proposed by the President today.  Spending is budgeted at $3,552,000,000 on top of this years (FY 2009) estimated spending of $3,938,000,000.  So basically, as a country we are going to spend $4 trillion this year and $3.5 trillion next year.   What does that mean to you if you are a taxpayer?  There are a number ways to look at this.  I have just a quick take for now.

The Bureau of Labor Statistics reports that in 2008, the United States had 120 million full-time employees.  With unemployment rising this number is going down.  I estimate this full-time employed group accounts for more than 90% of taxes paid.  (Corporate taxes are about 8% of federal receipts right now and should be 9% next year.  Workers making under $20,000 (a generous proxy for part time employees) pay less than 2% of the federal budget through their payroll and income taxes.)

Using these numbers, the average full-time employee is responsible for federal taxes this year in the amount of $29,534 and next year in the amount of $26,640.


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