Interest on the U.S. debt is forecast to be $479 billion. Interest on the approximate $23 trillion debt is the fastest-growing federal expense, expected to double by 2028.
The government expects to spend $4.746 trillion in 2020. Almost 60% of that pays for mandated benefits such as Social Security, Medicare, and Medicaid—the mandatory spending category.
The remaining $1.4 trillion pays for everything else. This is called discretionary spending. The U.S. Congress changes this amount each year, using the president's budget as a starting point.
The budget estimated that mandatory spending would be $2.841 trillion in FY 2020. This category includes entitlement programs such as Social Security, Medicare, and Medicaid, unemployment compensation, and others.
Social Security was expected to be the biggest expense at $1.102 trillion, followed by Medicare at $679 billion, then Medicaid at $418 billion.
Social Security costs are currently 100% covered by payroll taxes and interest on investments.
The discretionary budget for 2020 is $1.426 trillion. More than half goes toward military spending, including the Department of Veterans Affairs and other defense-related departments. The rest must pay for all other domestic programs. The largest of these programs are Health and Human Services, Education, and Housing and Urban Development.
Income taxes contribute $1.824 trillion or 50% of total receipts
Social Security, Medicare, and other payroll taxes add $1.295 trillion or 36%
Corporate taxes supply $255 billion or 7%
Excise taxes and tariffs contribute $157 billion or 4%
Earnings from the Federal Reserve's holdings add $49 billion or 2%. Those are interest payments on the U.S. Treasury debt the Fed acquired through quantitative easing.
Estate taxes and other miscellaneous revenue supply the remaining 2%
POINT PROVEN!!!
Discretionary spending 1.426
Discretionary Revenue from taxes that pay for discretionary spending
FIT 1.825 trillion
CIT .255 billion
Excise and TARIFFS 157 billion
