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 taxes. The pie charts in the activity
show the revenues and expenditures for the federal government in 2009.
The first pie chart, titled "Income," illustrates where the
federal government receives its money. Social Security, Medicare,
unemployment, and other retirement taxes represent 25% of the government
dollar received. Corporate income taxes represent 4% of the government
dollar received. Excise, customs, estate, gift, and miscellaneous
taxes represent 5% of the government dollar received. Borrowing represents
40% of the government dollar received. Personal income taxes represent
26% 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 34% of the government dollar spent. Net
interest on the debt represents 5% of the government dollar spent. National
defense, veterans, and foreign affairs represents 22% of the government
dollar spent. Social programs represents 21% of the government
dollar spent. Physical, human, and community development represents 15% of the government dollar
spent. Law enforcement and general government represents 2% of the government dollar spent.