Taxes- How Does the Government Spend Money?

The money Americans pay in taxes goes towards important factors, such as education, military funding and medicare. Most of the money actually goes towards social security as well as National Defense. This chart shows how the Government spends:

There is always a sketchy outlook towards the government because no one knows if this is where our money is actually going. Not everything is included in this chart because state taxes cover things such as medicaid and educational funds.

Savings and Debt

The article in the NY Times didn't shock me at all. It's a known fact that the average American family is in serious debt. The reasons aren't just finance charges and interest rates, its the carelessness of Americans. Families don't save anymore, they usually spend money they don't have on elaborate items, such as an $800 television set. Debt is becoming a lot more common than saving in this nation. This chart shows the declining saving rate from 1985- 2005.

In the United States saving money has become a hassle because there are so many bills to pay, on top of the necessities to live a healthy and normal life. Debt seems to be inevitable.

Critique of GDP Podcast

I reviewed Ronald and Richards GDP Podcast.
The podcast itself was very interesting. There was music in the background, pictures of the both of them and they talked as if it wasn't a Public Service Announcement. Everything was clear and the pictures had some relevance to the facts but there were hardly any facts.
Despite the obvious that it was a short recording, they only covered what GDP was and nothing more.
Needless to say, I learned nothing from the podcast. Sorry. =[

U.S Trade Defecit: Getting Better

According to an article in the NY Times, the United States economy is expanding due to the high rate of exports. The United States may be a rich country but we are known for our imports. Everything in the America is "Made in China" or in any other country that exports. If the United States continues to export then we wouldn't be in a trade defecit.
A trade defecit is when a countries imports from a foreign country are worth more than their exports towards other countries.
The United States is doing a great job of selling cars and fast food overseas.
Americans are making "Made in the U.S" goods more valueable in foreign countries and making products a lot more competetive. This is making the American dollar weaker by producing an intense amount of goods and sending them to other countries for where the money isn't worth as much but the product is valued more.

Taxes- How Does the Government Get Money?

The average American worker pays about 1/4 of their income to taxes. Some people pay taxes that others don't based on annual income amongst other factors. Medicare, social security and sales tax are some of the common taxes all Americans pay. Federal, state, and local taxes are paid based on how much the government needs.

Federal Tax:
Income tax- collected from rent, salaries, wages, and interest on bank accounts

Estate tax- collected from the deceased estate

Excise tax- taxes paid for alcohol, gas and tobacco

Payroll tax- only collected from salaries and wages

Gift tax- collected during the property of property


State Tax:
Inhereitance tax- collected from a person after they have inhereted from the deceased

Estate tax- collected from the deceased estate

Excise tax- taxes paid for alcohol, gas and tobacco


City/Local Tax:
Property tax- collected from financial assets including stocks, houses and cars

Excise tax- taxes paid for alcohol, gas and tobacco


THATS ALL FOLKS...

Student Loans- Beware

Student loans can be the worst things to experience but for most students seeking a higher education it is inevitable. Financial aid isn't helpful when most of it is in loans. The culinary students probably didn't get that great of a deal because od need base priority. To even get a full scholarship a students has to be on welfare and with a 99.99% average in high school. Other than that loans are the road to a bright future. Interest rates and fees are the things that make a loan a lethal decision. When a graduate is using their degree to find an entry level position and moving out on their own, $705 a month towards the Sallie Mae fund is going to put them into financial ruin.
I was given $1500 in a Stafford Loan and I have to pay $4000 towards tuition. I was going to take the $4000 out as a loan but my mom is taking it out of her 401K. So the only thing I have to pay is $1500 with a 6.8% interest rate.