Ever wondered where the $4.44 trillion the U.S. government collected last year came from, or how every dollar was spent and borrowed?
Key Takeaways
- In fiscal year 2023, U.S. federal government total receipts were $4.44 trillion
- Federal individual income tax receipts in FY 2023 amounted to $2.18 trillion
- Payroll taxes (social insurance) collected $1.61 trillion in FY 2023
- FY 2023 total outlays were $6.13 trillion
- Mandatory spending in FY 2023: $3.8 trillion (62% of total)
- Discretionary spending FY 2023: $1.7 trillion (28%)
- U.S. public debt held by the public reached $26.3 trillion at end of FY 2023
- Intragovernmental holdings of debt: $7.0 trillion as of Sep 2023
- Total gross federal debt: $33.2 trillion end FY 2023
- Federal budget deficit FY 2023: $1.70 trillion
- Deficit as % of GDP FY 2023: 6.3%
- Primary deficit FY 2023 (excl interest): $1.04 trillion
- State and local government total revenue 2022: $3.1 trillion
- State own-source revenue 2022: $1.8 trillion
- Local own-source revenue 2022: $1.9 trillion
Individual income and payroll taxes fund most government spending amid rising deficits.
Budget Deficits
1Federal budget deficit FY 2023: $1.70 trillion
Verified2Deficit as % of GDP FY 2023: 6.3%
Verified3Primary deficit FY 2023 (excl interest): $1.04 trillion
Verified4Cumulative deficits FY 2021-2023: $5.0 trillion
Directional5CBO baseline deficit projection FY 2024: $1.6 trillion
Single source6FY 2023 unified budget surplus/deficit reconciliation: -$1.695T
Verified7Off-budget deficit FY 2023: -$152 billion (Social Security)
Verified8On-budget deficit FY 2023: -$1.54 trillion
Verified9Structural deficit estimate 2023: 3.9% GDP
Directional10Cyclical component of deficit 2023: ~2.4% GDP
Single source11FY 2023 monthly deficit peak Oct: $352 billion
Verified12Cash basis deficit FY 2023: $2.0 trillion approx
Verified13Deficit financed by borrowing: $2.1 trillion gross
Verified14Historical avg deficit 1970-2023: 3.7% GDP
Directional15Post-WWII avg surplus/deficit: 0.1% GDP surplus
Single source16Bipartisan Policy Center deficit tracker Sep 2023: $1.7T
Verified17Adjusted deficit excl COVID relief FY 2023: $1.4T
Verified18Interest share of deficit growth 2023: 18%
Verified19Revenue shortfall contrib to deficit FY23: 9%
Directional20Spending overrun contrib FY23: 91%
Single sourceBudget Deficits Interpretation
The numbers paint a picture of a government that's running a rather enthusiastic tab, as even after stripping away the temporary sugar high of the pandemic and a humming economy, our core spending habits are essentially on a $1.4 trillion annual bender funded by the national credit card.
Federal Debt
1U.S. public debt held by the public reached $26.3 trillion at end of FY 2023
Verified2Intragovernmental holdings of debt: $7.0 trillion as of Sep 2023
Verified3Total gross federal debt: $33.2 trillion end FY 2023
Verified4Debt held by public as % GDP: 98% in 2023
Directional5Interest cost on public debt: $875 billion projected FY 2024, but FY23 $659B
Single source6Foreign holders of U.S. debt: $7.6 trillion (Japan $1.1T, China $0.8T) Sep 2023
Verified7Federal Reserve holdings of Treasury securities: $4.9 trillion Sep 2023
Verified8Mutual funds hold $3.6 trillion in Treasuries Sep 2023
Verified9State and local govts hold $1.2 trillion Treasuries Sep 2023
Directional10U.S. individuals hold $1.8 trillion in Treasuries Sep 2023
Single source11Pension funds hold $1.0 trillion Treasuries Sep 2023
Verified12Banks hold $3.2 trillion Treasuries Sep 2023
Verified13Insurance companies hold $0.6 trillion Sep 2023
Verified14Debt limit was raised to $31.4 trillion in Dec 2021, breached Jan 2023
Directional15Average interest rate on marketable debt: 2.5% end FY 2023
Single source1610-year Treasury yield averaged 3.96% in 2023
Verified17Maturity structure: 30% debt matures within 1 year Sep 2023
Verified18T-bills outstanding: $5.9 trillion Sep 2023
Verified19T-notes outstanding: $15.5 trillion Sep 2023
Directional20T-bonds outstanding: $4.8 trillion Sep 2023
Single source21Inflation-protected securities: $0.5 trillion
Verified22FRNs outstanding: $0.2 trillion Sep 2023
Verified23SLGS outstanding: $0.2 trillion
Verified24Total debt growth FY 2023: +$2.0 trillion
Directional25Projected debt to GDP 2033: 122%
Single sourceFederal Debt Interpretation
The United States is living on an expensive, globe-spanning credit card, where the annual interest is now a gargantuan line item, its own citizens and the world are major lenders, and nearly a third of this mountain of bills comes due every year just to be refinanced at higher rates, painting a picture of a fiscal future where our national budget is increasingly just a pass-through to our creditors.
Federal Expenditures
1FY 2023 total outlays were $6.13 trillion
Verified2Mandatory spending in FY 2023: $3.8 trillion (62% of total)
Verified3Discretionary spending FY 2023: $1.7 trillion (28%)
Verified4Net interest on debt FY 2023: $659 billion (11%)
Directional5Social Security outlays FY 2023: $1.35 trillion
Single source6Medicare spending FY 2023: $839 billion
Verified7Medicaid outlays FY 2023: $616 billion federal share
Verified8Defense discretionary spending FY 2023: $816 billion
Verified9Nondefense discretionary FY 2023: $910 billion
Directional10Veterans benefits FY 2023: $301 billion
Single source11Income security programs FY 2023: $775 billion
Verified12Federal employee retirement benefits FY 2023: $162 billion
Verified13Unemployment compensation FY 2023: $32 billion
Verified14Housing assistance FY 2023: $62 billion
Directional15Food and nutrition assistance FY 2023: $182 billion (SNAP etc.)
Single source16Education spending FY 2023: $79 billion discretionary
Verified17Transportation outlays FY 2023: $109 billion
Verified18Community and regional development FY 2023: $54 billion
Verified19Federal science and research FY 2023: $180 billion
Directional20Environmental protection FY 2023: $10 billion
Single source21International affairs FY 2023: $60 billion
Verified22General government FY 2023: $30 billion
Verified23Agriculture subsidies FY 2023: $28 billion
Verified24Energy outlays FY 2023: $15 billion
Directional25Justice administration FY 2023: $38 billion
Single source26Total federal outlays as % of GDP FY 2023: 23.6%
Verified27Health spending federal share 2023: 28% of national total $1.4 trillion federal
VerifiedFederal Expenditures Interpretation
Our national checkbook reveals a fiscal portrait where the promises of the past, personified by Social Security and Medicare, claim the lion's share of our commitments, while the nation's future investments in science and education must patiently queue behind them and a growing interest bill that is now our fastest-growing line item.
Federal Revenue
1In fiscal year 2023, U.S. federal government total receipts were $4.44 trillion
Verified2Federal individual income tax receipts in FY 2023 amounted to $2.18 trillion
Verified3Payroll taxes (social insurance) collected $1.61 trillion in FY 2023
Verified4Corporate income taxes generated $420 billion in FY 2023
Directional5Excise taxes brought in $87 billion in FY 2023
Single source6Estate and gift taxes totaled $34 billion in FY 2023
Verified7Customs duties collected $80 billion in FY 2023
Verified8Federal Reserve earnings remitted $116 billion to Treasury in FY 2023
Verified9Miscellaneous receipts were $149 billion in FY 2023
Directional10In FY 2022, individual income taxes were 50.4% of total federal revenue
Single source11Payroll taxes constituted 36.2% of FY 2023 federal receipts
Verified12Corporate taxes were 9.4% of total receipts in FY 2023
Verified13U.S. federal tax revenue as % of GDP was 17.0% in 2023
Verified14Effective federal tax rate for top 1% earners was 25.9% in 2020
Directional15Total federal receipts grew 11% from FY 2022 to FY 2023
Single source16Individual income tax refunds totaled $659 billion in FY 2023
Verified17Federal revenue from capital gains taxes was $307 billion in 2022
Verified18FY 2023 federal receipts from unemployment insurance taxes: $48 billion
Verified19Railroad retirement taxes: $6 billion in FY 2023
Directional20Federal highway trust fund receipts: $52 billion in FY 2023
Single source21Airport and airway trust fund: $15 billion in FY 2023
Verified22Inland waterway trust fund receipts: $0.2 billion in FY 2023
Verified23Federal revenue from oil and gas leases: $12 billion in FY 2023
Verified24Timber sales receipts: $0.1 billion in FY 2023
Directional25Spectrum auction proceeds: $85 billion cumulative since 1994, latest FY 2023 $0
Single source26Patient-Centered Outcomes Research Trust Fund: $1 billion in FY 2023
Verified27U.S. Treasury securities held by public as % of revenue: varies, but interest payments covered by revenue portion
VerifiedFederal Revenue Interpretation
The federal budget is a towering edifice built predominantly on the taxed sweat of individual brows, with corporate titans and sundry other levies serving as its substantial, yet secondary, fiscal buttresses.
State Local Finance
1State and local government total revenue 2022: $3.1 trillion
Verified2State own-source revenue 2022: $1.8 trillion
Verified3Local own-source revenue 2022: $1.9 trillion
Verified4Federal aid to states 2022: $1.0 trillion (32% of state revenue)
Directional5State individual income taxes 2022: $570 billion
Single source6State sales taxes 2022: $480 billion
Verified7Property taxes (mostly local) 2022: $650 billion
Verified8State corporate taxes 2022: $100 billion
Verified9Local general expenditures 2022: $2.0 trillion
Directional10State general expenditures 2022: $2.1 trillion
Single source11Elementary/secondary education spending state/local 2022: $870 billion
Verified12Public welfare spending state/local 2022: $650 billion
Verified13Highways state/local 2022: $170 billion
Verified14Police protection 2022: $140 billion local mostly
Directional15Fire protection 2022: $50 billion
Single source16Hospitals state/local 2022: $130 billion
Verified17Utilities local 2022: $220 billion
Verified18State pension liabilities unfunded 2022: $1.4 trillion
Verified19Local pension unfunded 2022: $0.6 trillion
Directional20State debt outstanding 2022: $1.2 trillion
Single source21Local debt 2022: $1.9 trillion
Verified22State budget surplus/deficit avg 2022: +$100 billion collective
Verified23Property tax as % local revenue: 30% avg 2022
VerifiedState Local Finance Interpretation
America's state and local governments are a $3.1 trillion enterprise, a surprisingly self-funded juggling act of taxes and services, where the real trick is keeping all the revenue balls in the air while the looming pension and debt anvils wait patiently overhead.
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