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View Full Version : Where your money goes?



Rich Riddle
04-30-2013, 10:00 AM
I am wondering where your money goes in the biggest chunks? This year the highest percentage of ours will go to remodeling, repairing the home, etc. This will be followed by house payments, necessities, people, and vacations.

Here is an unbiased link to where the federal budget goes this year:

http://www.usgovernmentspending.com/year_spending_2013USbn_14bs1n#usgs302

If you don't want to read it, the top five expenses in rank order for the fed are:

1. Health Care
2. Pensions
3. Defense
4. Welfare
5. Interest on National Debt

David Weaver
04-30-2013, 10:06 AM
They nearly fooled me with #2. #2 is generally social security, and not an expense for deductible contributions to tax qualified plans. About $47.9M (~5%) of the total is pensions for federal employees. It would've been more appropriate to label that social security.

Jim Tabor
04-30-2013, 10:48 AM
I think most federal employee retirement plans are in addition to social security.

Craig D Peltier
04-30-2013, 11:52 AM
With the price of all fuels I would think that should be on there.

Steve Meliza
04-30-2013, 5:24 PM
In 2012 the top 5 for us were:
1) Mortgage payments (we pay extra)
2) Income tax
3) Retirement savings
4) Giving/Charity
5) Home improvement projects

If you asked me what I thought a government (any government) should spend its money on I would probably put the order like this:
1) Defense and law enforcement (military, police, and other emergency responders)
2) Infrastructure (Roads, transportation, utilities, buildings, etc)
3) Social programs (Basic welfare, foreign aid, unemployment, parks, research, etc)

I arrived at these priorities by asking myself what a government created by the people would be better at handling than the individual people and in order of what is most essential for a civilized existence. Without #1 life would become solitary, poore, nasty, brutish, and short.

Jim Matthews
05-01-2013, 9:54 AM
If you asked me what I thought a government (any government) should spend its money on I would probably put the order like this:
1) Defense and law enforcement (military, police, and other emergency responders)
2) Infrastructure (Roads, transportation, utilities, buildings, etc)
3) Social programs (Basic welfare, foreign aid, unemployment, parks, research, etc)

I arrived at these priorities by asking myself what a government created by the people would be better at handling than the individual people and in order of what is most essential for a civilized existence. Without #1 life would become solitary, poore, nasty, brutish, and short.

If you consider these expenditures based on taxation (rather than the Social security trust fund) the first is significantly larger than all the rest, since 2001.
In particular, consider the VA and future outlays as part of the DoD rather than social programs.

I find the description of my extended family (solitary, "poore", nasty, brutish and short) apt, if mildly offensive.
We of the clan MacFrugal believe that most of modern society's ills stem from an abundance of freakishly tall people (over 5' 6") and have infiltrated the airline industry to exact our revenge.

Stephen Cherry
05-01-2013, 3:08 PM
I think most federal employee retirement plans are in addition to social security.

I'm pretty sure that the "old plan" was federal employees with no social security.

The new plan, as I understand it, includes both a less generous pension plan, and social security.

Stephen Tashiro
05-01-2013, 3:42 PM
Under the old old plan and laws, fedeal workers did not pay SS taxes and those who retired on federal pensions or private pensions could collect social security to the full extent that their contributions to it (from working other jobs) allowed. Under less old law, federal workers did not pay SS taxes and they or other persons with pensions can collect social security, but their SS pay-out is calculated using a less generous formula than for regular workers. Under the current federal retirement plan, I think the workers pay SS taxes or something equivalent. I don't know if they are subject to the penalty for pensioners.

John Pratt
05-01-2013, 4:46 PM
1. Federal Taxes (income, Medicare, SS)
2. Mortgage
3. Gas (vehicle fuel)
4. Groceries (4 teenage kids)
5. State and local taxes

Current Federal workers pay SS taxes just like everyone else. The pension plan for those workers is an IRA/TSP (thrift savings plan) with an up-to 5% match. There are a few of the old timers still around who fall under the old system, but the majority fall under the new system. (I fall into the new system).

Kevin Groenke
05-01-2013, 5:50 PM
1 - retirement savings
2 - state and federal taxes
3 - mortgage (for 2 more months)
4 - food and utilities
5- fun & games (travel and hobbies)

Stephen Cherry
05-01-2013, 5:52 PM
1. Federal Taxes (income, Medicare, SS)

Current Federal workers pay SS taxes just like everyone else. The pension plan for those workers is an IRA/TSP (thrift savings plan) with an up-to 5% match. There are a few of the old timers still around who fall under the old system, but the majority fall under the new system. (I fall into the new system).

It looks like it is the three, TSP, social security, and a pension plan FERS:

http://www.opm.gov/retirement-services/fers-information/

Brian Elfert
05-01-2013, 6:25 PM
Current Federal workers pay SS taxes just like everyone else. The pension plan for those workers is an IRA/TSP (thrift savings plan) with an up-to 5% match. There are a few of the old timers still around who fall under the old system, but the majority fall under the new system. (I fall into the new system).

Workers under the new system still get a traditional pension in addition to Social Security and the TSP. It does appear the employee has to pay part of the cost of the pension.

M Manlove
05-01-2013, 8:24 PM
As usual we need to look at figures with some caution. This budget is not a government document. As it is no accuracy is required. And I assure you that no accuracy was achieved.
I am usually considered extremely conservative about our federal budget. But this stuff is beyond the pale. Not really worth reacting to. Add a little caution regarding the federal retirement systems. In private industry nobody pre-funds retirement accounts at 100%. All federal retirement programs are funded in advance. Some agencies pay further in advance than others. The postal service is required to fund retirement accounts at 100% 75 years in advance. Look it up!! Right now this agency is funding accounts for people who won,t be born for 10 more years. And yes, there is a reason congress did that. My point is that retirements are not usually looked at in the federal budget process because the monies have been on account for years in advance. Our budget process and spending by congress needs ultra-major overhaul. The simple truth is pretty frightening. We don't need these distortions to see that we have a problem.

Shawn Pixley
05-01-2013, 10:51 PM
Our five:

1.) Taxes (primarily income and property)
2.) Mortgage
3.) Food (three adults, 2 dogs and 1 cat)
4.) Retirement & investment
5.) Utilities
6.) Home maintenance and improvements

Stephen Cherry
05-01-2013, 11:31 PM
Our five:

1.) Taxes (primarily income and property)
2.) Mortgage


Washington is a pretty nice place, isn't it?

Don Morris
05-02-2013, 3:50 AM
Retired Military = lots of gold on sleeve, little in pocket.

Our five:
Mortgage: when you move a lot, it's difficult to have the opportunity to buy a home until late in your career or when you get out. And we put two boys through college (private) on our tab. When first one graduated I had $1500.00 in the bank, and that was all I had! But no other debt other than mortgage. No regrets, they're grateful, successful and great people. One of which is a good wood worker too, just doesn't have the time to do much because he owns his own business.
Taxes We live in Maryland, the third most taxed State in the Union. The Governor is one of the most liberal and trying to become the second most taxed State. Fortunately I'm married to a stingy Swede, the daughter of a Swedish cabinet maker who hates Malls, doesn't like shopping and loves to do her own cooking. So we're not big spenders. If we buy Fancy Feast for the cat once in a while, it's a big deal.

David Weaver
05-02-2013, 8:21 AM
Don - having a wife who is on the same page money-wise, and who has a healthy fear of being broke, is a very good thing. A stingy wife makes for a good marriage.

Stephen Cherry
05-02-2013, 1:37 PM
Taxes We live in Maryland, the third most taxed State in the Union. The Governor is one of the most liberal and trying to become the second most taxed State.

l.

Don- please don't get me started. I am a life long marylander, and I am going to make my exodus.

Are you ready for the rain tax? (to those living in normal areas, it's a tax for rain falling on your property).

Ken Fitzgerald
05-02-2013, 1:39 PM
Just a friendly reminder that political discussions are not allowed at SMC per the Terms Of Service.

Ben Hatcher
05-02-2013, 2:43 PM
I was a little surprised to see that mine are Federal income tax/SS/Medicare were my #1, followed by state/local/property tax, then mortgage. If I counted what my employer and I combined pay for health insurance, that would be ahead of mortgage as well. I imagine if I were a small business owner who had to write a check for these each month or quarter, I'd be a lot more annoyed by this than I am now. They're all taken out before I see anything, so I don't really miss it.

David Weaver
05-02-2013, 3:26 PM
I imagine if I were a small business owner who had to write a check for these each month or quarter, I'd be a lot more annoyed by this than I am now.

That's likely the reason you're no longer allowed to withhold taxes and pay them in full at the end of the year, nor are you allowed to do the same if you get a distribution or bonus. It's easier to take a lot from you a little bit at a time. Same philosophy as getting people to take a loan for home improvements vs. paying cash. If we all were allowed only one mortgage in our lifetimes, 95% of us would have smaller houses and we'd be less free wheeling about very costly cosmetic improvements.

Brian Elfert
05-02-2013, 5:24 PM
Income taxes were originally paid by wage earners to the government directly not sure if yearly, monthly, or what. Compliance was poor so government finally came up with the idea of forcing employers to withhold the tax from wage earners. It has less to do with making the amount look lower than actually collecting the tax at all.

I know I pay a lot of taxes no matter what frequency I pay them at.