Where Do Our Tax Dollars Go? Ernie Sharp Breaks It Down

Where Do Our Tax Dollars Go? Ernie Sharp Breaks It Down

Before I get to your tax dollars, and where they went, I have a couple thoughts for you.

We’re still settling down from the flurry of last week and the passing of the April 15th deadline. There were MANY more procrastinators this year than in years past, in my opinion because of so much confusion in the marketplace.

In fact, it might be that YOU procrastinated, or that you (or your friends) slapped something together at the last minute, filed it, and … you (or they) might be feeling a little uncertain.

Well, I have a solution for that below.

Because of tax reform, I know for a fact (at least based on some Facebook and LinkedIn group messages that I’ve seen) that many of our Ashland, KY tax professional colleagues out there were scrambling to make sure things were filed properly. And some weren’t so certain about the tax positions they were taking for their Ashland, KY clients.

That’s why I have an offer for you (or for your friends).

Many tax businesses don’t provide this service, but even though we’ve completed most of our clients’ returns, we WILL review any of your friends’ returns — at no charge.

See the below special message, for more details:

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“No Charge” Return Review
Special Gift Certificate

As a complimentary service this year, we will provide a Return Review to any non-client. 
We will also review prior year returns from clients who did NOT have us handle their taxes during the year under question. 
No charge will be made, unless we have to file an amended return.
Email our office (using the email at the top of the page)
or call (606) 324-5655 to set up this complimentary service.
Deadline: Friday, May 10th, 2019

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Take advantage — in fact, this is a great blog to forward to any friends you might have that could use an extra set of eyes.

Also passing last week was the annual “Tax Freedom Day“, as tracked by the Tax Foundation. This is the date when the nation as a whole* has earned enough money to pay its total tax bill for the year.

(*It should be noted that this is only a collective average and does not accurately reflect the number for you or for your neighbors — it is the average tax burden for the overall economy, rather than for specific subgroups of taxpayers.)

And, as in years past, Americans will collectively spend more on taxes in 2019 than they will on food, clothing and housing combined.

Now, it’s part of our job to keep your tax bill down, but we can’t do much about the nation’s tax burden, aside from casting ballots. But we can help your friends, family and neighbors. (Or maybe even YOU, if you for some reason didn’t use our services this year.)

But all of those tax dollars have to go somewhere…

Where Do Our Tax Dollars Go? Ernie Sharp Breaks It Down

“Life is what happens to us while we are making other plans.” -Allen Saunders

Unless you filed an extension, the 2019 tax season is a wrap.

I hope that you were able to file your taxes on time … what’s more is that I hope you were able to file ACCURATELY on time. Something easier said than done.

If your taxes brought unusual difficulty and frustration to you and your family this year, I get it. I would love an opportunity to sit down with you and figure out a new approach so that this time next year, you can walk a little taller. As taxes become more automated through online e-learning platforms, some folks favor convenience over accuracy. Although a sit down with each other takes a little time out of your schedule, it also helps you file with greater confidence.

Let me know if you’d like a professional in your corner. In addition, it’s important we act soon … “waiting til next year” will only bring more anxiety to your plate, and that’s the last thing I want.

Now, if you are one of the estimated 153 million individuals to file your taxes this year, I want to give you some insight into where those hard-earned dollars are going to help our nation grow.

Below are some numbers detailing allotted tax dollars for the 2018 fiscal year.

Total Outlays: $4,108 Billion

Note: “Outlays are generally accounted for on the basis of checks issued, electronic funds transferred, or cash payments made. Certain outlays do not require issuance of cash or checks.”

Defense: $665 Billion

Social Security: $988 Billion

Medicare: $589 Billion

Interest on Debt: $325 Billion

Other: $1,542 Billion

Total Receipts: $3,329 Billion

Note: “Receipts included in the report are classified into the following major categories: (1) budget receipts and (2) offsetting collections (also called applicable receipts).”

Individual Income Taxes: $1,684 Billion

Social Security and Other Payroll Taxes: $1,171 Billion

Corporate Income Taxes: $205 Billion

Other Taxes and Duties: $270 Billion

Federal Deficit: $779 Billion

Note: The federal deficit is when government expenses exceed the amount of tax dollars accrued.

If you have an extra five minutes on your hands, and really enjoy speed reading, this Treasury Statement (quoted above) from September 30, 2018 will give you an in-depth look at some of the numbers behind the numbers.

I’d like to hear what you think as well as some questions you might have … perhaps at our first meeting. 🙂

Warmly,

 

Ernie Sharp

(606) 324-5655

Ernest P. Sharp II, CPA