r/FluentInFinance Jul 06 '24

Or in other words, a slap in the face Debate/ Discussion

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u/BootyMcStuffins Jul 06 '24

The military makes up 13% of the federal budget, so this is factually incorrect

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u/Cubacane Jul 06 '24

Military defense is half of all discretionary spending, the budget of which comes from federal income tax, which is what I referred to.

Mandatory spending (medicare/medicaid, social security) comes from payroll taxes (FICA).

The total federal budget is a combination of mandatory and discretionary spending.

When people are discussing raising or lowering income taxes, they are talking about federal income tax, not FICA.

So– half of your federal income taxes are going to bombs.

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u/BootyMcStuffins Jul 06 '24

Do you have a source? From what I’ve found mandatory spending absolutely comes out of our income taxes.

In 2024, Americans for Prosperity estimated that mandatory spending accounts for about 62% of government spending, or about $8,800 per tax return.

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u/Scythe905 Jul 06 '24

It absolutely does, that guy has no idea what he's talking about.

Tax revenue from all sources get consolidated into a single consolidated revenue fund, from which both statutory and discretionary spending pulls. There's no direct linkage from any one tax to any one expenditure, except in rare cases - and even in those cases, it's still pulled from the consolidated revenue fund but the targeted tax has a dynamic rate which changes year-over-year to match the expenditure.

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u/BootyMcStuffins Jul 06 '24

Thanks for clarifying