US Federal Spending 3-23-25

US Federal total spending was $6.8 trillion in FY2024. US Federal total Revenue was $4.9 trillion. The annual Deficit was $1.9 trillion. Balancing the US Federal Budget will require increasing revenue by lowering tax rates. If we can reduce Federal Spending by $1 trillion and increase Federal Revenue by $0.9 trillion we will have a balanced budget and will stop the rise in the US National Debt. If Tariffs are lowered to 2%, we will be able to use Tariff Revenue and reduce the National Debt by $0.7 trillion per year. 

The fiscal year is the accounting period of the federal government. It begins on October 1 and ends on September 30 of the next calendar year. Each fiscal year is identified by the calendar year in which it ends and commonly is referred to as “FY.” For example, FY2011 began October 1, 2010, and ends September 30, 2011.

In the US federal calendar year 2024, total spending reached $6.9 trillion, while revenues totaled $4.9 trillion, resulting in a deficit of $2.0 trillion. 

Using the US calendar year, the US Annual Federal deficit was $2 trillion. 

In fiscal year 2017, the U.S. federal budget deficit totaled $665 billion, which was 3.5% of the nation's gross domestic product (GDP). 

In 2018 the U.S. federal government collected $3.33 trillion in total tax revenue in 2018. Meanwhile, state governments collected a total of $1.04 trillion and local governments collected $0.44 trillion. Altogether, that means $4.81 trillion in tax revenues was collected in the U.S in 2018.

In the 2018 federal calendar year, the US government collected $3.33 trillion in revenues and spent $4.11 trillion, resulting in a deficit. 

Here's a more detailed breakdown:

Revenues:

·       Total: $3.33 trillion

·       Individual Income Tax: $1.7 trillion

·       Social Security/Payroll Tax: $35.2 trillion

·       Corporate Income Tax: $6.1 trillion

·       Other Revenue: Includes excise taxes, estate and gift taxes, customs duties, and miscellaneous receipts. 

Spending:

·       Total: $4.11 trillion

·       Mandatory Spending: $2.5 trillion, including Social Security, Medicare, and veterans benefits.

·       Discretionary Spending: $1.61 trillion, including defense and non-defense spending.

·       Defense Spending: $623 billion

·       Non-Defense Spending: $639 billion

·       Social Security: $582 billion

·       Medicare: $389 billion

·       Medicaid: $570 billion 

In 1974, Congress passed the the Congressional Budget and Impoundment Control Act, signed by President Richard Nixon, establishing a budget process and new dates for the government’s fiscal year, moves that leaders hoped would make it easier to agree on annual federal spending plans.

Almost a half century later, consensus on federal budgets is more elusive than ever, and Congress keeps passing continuing resolutions that maintain government spending at the previous fiscal year’s levels.

Comments

The US needs to reduce Federal Spending by $2 trillion per year in order to balance the Budget. We also need Tariffs to pay down the National Debt.

Confusing methods of reporting government data has been the norm for decades. There are 44,000 Lawyers working for the Federal Government. 30% of House Members, and 51% of Senators, have law degrees and have practiced law. Lawyers are trained to “debate” and their role is adversarial. They are trained to disagree. Law Schools need to ensure that Lawyers will defend the US Constitution’s original intent.

Being successful in any endeavor requires a “common vision” as was used by the Founders who tripled the US Land Mass from 1789 to 1848. They sought advice from the merchants who were working in the US to learn the economics and needs of each industry.

The case for changing the Federal Budget Year back to Calendar Year is clear. Presidents and Congress win their elections in November and take their posts in January. They have time to learn what needs to be done.

Conditions in each State and Congressional District will differ, but common problems are not unheard of. The “Rust Belt” shared common problems and now our rural counties share common problems.

The current polarization between Democrats and Republicans reflects the movement of US voters from Socialism back to Free Enterprise and could be the beginning of the end of our conversion from Communism to Capitalism. This was our Bolshevik Moment. Communists can’t win unless the majority of their population is devastated and starving and ready to try Communism. 

Norb Leahy, Dunwoody GA Tea Party Leader