Taxpayer 'invoice' might change the debate in D.C.
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Ithica Journal
Brian Tumulty
10/17/2010
WASHINGTON -- What if you received an invoice in the mail every year to show just how your federal tax bill was spent?David Kendall of the Third Way, a Washington think tank of moderate liberal policy leanings, broached the idea recently in an article that included a sample invoice.Kendall used a tax filer with the 2008 median adjusted gross income of $34,140 who owed federal income taxes of $2,790 and paid another $2,610 in federal payroll taxes for Social Security and Medicare.He calculated that the largest share of the taxpayer's $5,400 in federal payments went to Social Security, accounting for $1,040.70. Other major shares went to Medicare at $625.51 and Medicaid at $385.28. Interest on the national debt cost that taxpayer $287.03.The state of California Franchise Tax Board provides an Internet tool for Golden State taxpayers to find out where their money goes (http://tinyurl.com/33m6ck7).For someone paying $1,000 in taxes to California, the website receipt lists 10 categories of spending, with the largest being $299 for K through 12 education. The next two: $275 for health and human services and $105 for the state's Business, Transportation and Housing Agency.At the federal level, there are several nonprofit groups that have similar online calculators, including the National Priorities Project (www.nationalpriorities.org//taxchart/2010).Steve Ellis of Taxpayers for Common Sense supports the concept. "The government should provide more information on how the money is being spent," Ellis said.Robert Bixby, executive director of the bipartisan Concord Coalition, endorsed the goal but pointed out that the invoice could suggest the entire federal government is financed by income taxes.Brian Riedl, a federal budget expert at the conservative Heritage Foundation, agreed that taxpayers should be aware that income taxes account for only 43 percent of federal revenue.Dedicated payroll taxes for Social Security and Medicare are another big portion. The remainder includes corporate income taxes, royalties, trade tariffs and various excise taxes such as gasoline taxes and airline fees.And a big portion of federal spending in recent years has not been covered by revenues. It's called the deficit. Payment on that bill is being postponed for future generations to handle.
