Internal Revenue Service United States Department of the Treasury

 

The government provides public goods and services for the community as a whole. The government also regulates business activities and redistributes income. In order to pay its bills, the government needs revenue, or a source of income. The money that the federal government uses to pay its bills comes mostly from various taxes. The pie charts in the activity show the revenues and expenditures for the federal government in 2012. The first pie chart, titled "Income," illustrates where the federal government receives its money. Social Security, Medicare, unemployment, and other retirement taxes represent 24% of the government dollar received. Corporate income taxes represent 7% of the government dollar received. Excise, customs, estate, gift, and miscellaneous taxes represent 7% of the government dollar received. Borrowing represents 30% of the government dollar received. Personal income taxes represent 32% of the government dollar received.

The second pie chart, titled "Outlays," illustrates the services provided by the federal government. Social Security, Medicare and other retirement represents 38% of the government dollar spent. Net interest on the debt represents 6% of the government dollar spent. National defense, veterans, and foreign affairs represents 24% of the government dollar spent. Social programs represents 21% of the government dollar spent. Physical, human, and community development represents 9% of the government dollar spent. Law enforcement and general government represents 2% of the government dollar spent.

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