US: Where Your Taxes Go

It’s tax season in the US.  It feels like it’s always tax season, since we’re always debating taxes, but now’s when we’re actually doing our own personal returns.

Last year the White House put up a calculator to show the breakdown of where taxes go in the system.  It’s still up, even if it’s a bit out of date, and I plugged in some numbers.

Tax breakdown from WhiteHouse.gov

Screenshot from WhiteHouse.gov

Tax policy can be boring and complicated. It also affects society. The US has varied tax rates (and it’s certainly not alone in that) for the federal income tax. It also has a flat payroll tax on wages for Medicare and on the first $110,100 earned for Social Security.

What does this mean in practice?

I have a higher-than-average income from my job and no investment income, so I pay the payroll and income taxes.  OTOH, I live in Washington State, so I don’t have a state income tax.

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