NCPA - National Center for Policy Analysis


April 9, 2007

As taxpayers prepare to meet this year's April 16th tax deadline, they may want to consider that almost 40 cents of every tax dollar is spent on past and present military spending, according to a newly released publication by the National Priorities Project (NPP), a non-profit research organization that examines the local impact of federal spending policies.

In "Where Do Your Tax Dollars Go?" NPP offers breakdowns of how the federal government spends the median household's tax payment in each state and over 200 cities.

  • In 2006, current military spending accounted for 27 cents of every income tax dollar paid.
  • Additionally, nine cents of every federal income tax dollar paid today could be attributed to borrowing to pay for past wars and military build-ups.
  • Finally, disability payments, health care and other benefits accrued to veterans made up a little over three cents of the federal income tax dollar, bringing total military spending up to close to 40 cents of every tax dollar.

Meanwhile, beyond military spending, the next two largest areas of spending occurred in health at 21 cents of every tax dollar and interest on the debt at 19 cents.   

Source: "Military Spending Gets Forty Percent of Every Income Tax Dollar," Kansas City infoZine, April 9, 2007; "Where do your tax dollars go?" National Priorities Project, April 4, 2007.

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