Healthcare is the largest part of the US government (all healthcare programs combined), extremely complex, and growing faster than our economy. If we are serious about addressing our huge deficits and debt, we need to reform our public healthcare programs. There are no easy options and we hope that this
Please enjoy our most recent video explaining the U.S. Debt and Deficit.
On paper, the federal budgeting process is relatively straightforward. Each year, Congress is supposed to set an overall budget framework and then pass a series of spending bills before the fiscal year begins on October 1. If that happened consistently, the process would be predictable and easier for the public
National defense spending funds: The military (Army, Navy, Air Force, Marines, Space Force) Operations, training, and readiness Weapons systems and equipment Intelligence and national security support It is one of the core and uniquely federal functions of government. Scale Current Spending: ~$917 billion (~13% of total federal spending; fourth largest
Social Security is a federal program that provides retirement income, disability benefits, and survivor benefits (for families of deceased workers). It is primarily funded through payroll taxes paid by workers. Scale Total Spending: ~$1.65 trillion (~24% of total federal spending; largest federal program) Per person: ~$4,940 Per household: ~$12,200 Covers
Interest on the debt is the cost of borrowing money to fund past deficits. When the government runs deficits, it issues debt. Over time, it must pay interest on that debt to investors. This spending does not fund programs or services. It is the cost of prior decisions. Scale Total
Federal healthcare spending primarily includes: Medicare (primarily for seniors and some disabled individuals). Medicaid and CHIP (for lower-income individuals, families, and children). Affordable Care Act (ACA) subsidies and related programs. Veterans healthcare and smaller federal health programs. Together, these programs provide healthcare coverage or support to well over 140 million
The Basics The federal government collects roughly $5.2 trillion per year in revenue, primarily through taxes. Where the Money Comes From Individual Income Taxes ~$2.6 trillion (~50%) Payroll Taxes (Social Security & Medicare) ~$1.9 trillion (~36%) Corporate Taxes ~$420 billion (~8%) Other (excise taxes, tariffs, etc.) ~$300 billion (~6%) Note
The Big Picture After the “Big Four” (Social Security, healthcare, interest, and defense), the remaining federal spending is: ~25% of the budget (~$1.7–$1.8 trillion total) This category includes many programs, but no single one dominates. For context, the current annual deficit (~$1.7–$1.8 trillion) is roughly equal to all of these
It is easy to look at a number like $38 trillion in federal debt (a number that is probably higher by the time you read this article!) and assume we should panic. That reaction is understandable—but we have some room to breathe. A country like the United States can carry a
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