Follow Where You Tax Dollars Are Being Spent

Tyler Durden's picture

Earlier during the S&P conference call, one of the participants asked the brilliantly simple question: with the Fed monetizing debt, why should the US even bother to collect taxes? When one steps back from the apparent insanity of this rhetorical question, it does present a very good though experiment: after all what better way to stimulate the consumer part of the economy than to let 'taxpayers' no longer be that, and retain 100% of their cash. In the meantime, since nothing impacts bond yields, the statists will say, the Fed can continue to monetize debt indefinitely: after all we have a printing press and a reserve currency (an argument so asinine even the S&P laughed at it), until we get to a point where consumers have no choice but to lever up in the face of rampant inflation. And don't forget - the Fed can print an infinite amount of Treasury puts to where it alone pins yields to desired levels. While we hope to see much more discussion over this very simplistic yet so crucial question in the future, for all those (and at about 53%, it's not that many) in the US population who pay income and other taxes, courtesy of the White House, here is a schedule that shows where tax dollars are being spent. And don't forget: the Fed continues to match roughly one dollar for every dollar reimbursed back to the IRS.

From the White House:

In his State of the Union Address, President Obama promised that this
year, for the first time ever, American taxpayers would be able to go
online and see exactly how their federal tax dollars are spent. Just
enter a few pieces of information about your taxes, and the taxpayer
receipt will give you a breakdown of how your tax dollars are spent on
priorities like education, veterans benefits, or health care.

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TheGreatPonzi's picture

Or as someone there put it, "should I donate to the Red Cross after, or before the BoJ prints $500 billion out of nowhere"? :D

redpill's picture

Nothing quite kicks off a robust round of "every man for himself" like fiat ponzi.

Obummer's picture

Ladies and gentlemen, fellow Americans, good people of the world. Today one of the world's top ratings agencies told us that they had changed their outlook on the United States debt outlook to negative for the first time ever. This action has the potential to change our society profoundly. But what exactly does this mean for us?  Folks, let me be clear, this is a good thing for this country, and for my administration.

As we all know, debt is bad. In talking with our economic team we find that having debt with a negative outlook is positive for us, for this great country. You see, debt with a negative outlook is a double negative.  With a double negative things actually turn positive. And we know this is true because we see positive developments everywhere, from green shoots in the economy to value deflation in the dollar.  Once again we see hard-working Americans creating value for the world.  Once again we see the path before us, the path to win the future.

Some may try to disprove the double negative standard.  They may say that two wrongs do not make a right, that one should not throw good money after bad.  Rest assured that this will not happen, not as long as I am President. Honest, hard-working Americans deserve better than that. My administration will stand up to these forces of destruction, and we will win.  We will win the future for all Americans, old and young, black, white, brown, and yellow. This is our destiny as a great nation, and we go now to meet our destiny.

Thank you, good night, and God bless America.

WaterWings's picture

In the Age of the Printing Press, taxes have two functions:

1) perceived "equal" redistribution of wealth

2) price controls

That is all.

Hugh G Rection's picture



You should write speeches for the sockpuppet

DonnieD's picture

Good stuff, Barack, but I think Pete Stark disagrees on debt being bad. The more debt you have, the wealthier you are. Duh.

sdmjake's picture

"No circumstances were ever so bad that a little human effort couldn't make them worse."
- Frederik Pohl, The Other End of Time, chap. 15

SwingForce's picture

AWESOME! I could hear The Douchebag What's in Charge SAYING THE WORDS!



A Texan's picture

Yeah, but you need an "ahhhhh" or an "uhhhh" about every 5th word, plus at least one very uneasy 5-7 second pause as the DOTUS thinks about how his speech might affect his brackets, and how much Aunt Esther will yell at him for not putting down the seat.

D1eeeeeNAHHHHH's picture

Men don't every do it!  Women have successfully sued for child support after the donations! 

Don't believe these clinics' stories of never being known in court.  google it for yourself and find out!

gall batter's picture

i happened to click on the link and dr. lazar greenfield said:


"The editorial cited research that found that female college students who had had unprotected sex were less depressed than those whose partners used condoms. It speculated that compounds in semen have antidepressant effects."

Has nothing to do with child support--just semen as a mood enhancer. 


morkov's picture

you jackass!!! you have spent "Chinese" lives making what you have customized...when life meets life, someone will make a call on yours...the only question is "did lives met yet, or is the US military still in control?" is it every man for himself or everyman for his mates...and another world war

Hugh G Rection's picture

transparency bitches...


liquidize everything, roll into PMs, and tell the the Feds to eat a dick.  South America is nice this time of year.

redpill's picture

I'll buy the first round of cerveza in Santiago.

Hugh G Rection's picture

sounds good.


I got the first round of panocha. 

Sudden Debt's picture

Donate your money or watch it turn worthless. In this democracy you get to make your own choice!

Mark McGoldrick's picture

What happens to the value of the US dollar once the Federal Reserve absolves Treasury's debt? Remember, the Fed is our largest creditor.

Does anyone actually think the Federal Reserve would destroy itself?

FEDbuster's picture

Let's not forget the FED kicks any interest paid to them back to the US Treasury Dept. after they skim their 6% profit/dividend from the top.  It's just a glorified Three Card Monty game designed to confuse those who try to pay attention to them, most Americans don't care.

rocker's picture

Most Americans care. They just don't understand it.  Afterall, most watch Glenn Beck and Fake News.  They are told how to think

Stupid is as Stupid Does.

FEDbuster's picture

Beck has done more to try and explain the FED to America than any other TV host (he recently had G. Edward Griffin author of "The Creature from Jekyll Island" on), but the average American could not tell you what the FED does, how it works and how QE is ruining the dollar.  Beck has actually tried to educate his audience about the workings of the FED, our unsustainable debt load, unfunded government liabilities, etc...  He of course is labeled a fear monger, crazyman, doomsayer, nut case, etc.. for the warnings he has issued.  So now S&P will join Beck as a fear monger, doom and gloomer for their downgrade of US debt status.  In fact, Turbo Tim just was on CNBS disagreeing with S&P telling the world the US's future is bright and politicians will come together to solve the debt problem.  Who are you going to believe?

wisefool's picture

One of the most macbre things I ever saw was an advert in the 1990s where Elizabeth Dole asked the american public to donate to the Red Cross. Either Blood or money. She earned a salary of over $1MM per year. And they chased nader out of the presidential race because, as a liberal, he had a net worth of $1MM

ms1408's picture

I wonder if they've listed interest payments to the private federal reserve in that receipt.

csmith's picture

But that's the point...the Fed simply remits the interest back to the Treasury. That's the "Ponzi" part of this whole mess. And, as with all Ponzis, the problems begin when "investors" demand that principal be paid off. This is why we're going to have QE3, 4, 5, etc. 

NOTW777's picture

does this result in tracking or obama spam? a subscription to steve liesman?

Dr. Richard Head's picture

Ohhhh. I hope both.  Goverment tracking me throwing shit at my TV when LIESman talks.  Fun.

Dr. Richard Head's picture

In reality, isn't all of the tax receipts for the IRS going to the Federal Reserve?  Something about grace Commission Report - 1984?

stretch's picture

In which field do I enter the amount of inflation tax paid?

A Lunatic's picture

Thanks for pissing me off again.

InconvenientCounterParty's picture

zero taxes...

I imagine the Tea Party would declare "mission accomplished".

Of course I can't claim to understand what the core values of that group are.

NOTW777's picture

get help, just say no to koolaid.  ur on ZH - that is a start

Creed's picture

what part of



do you not understand? seriously, get a grip

HamyWanger's picture

To the great disappointment of bigot, libertarian, pro-gun, silverbug, anti-inflation, anti-Federal Reserve, anti-Semite rednecks, the global economic recovery is accelerating, and our President Dr. Barack H. Obama will get reelected hands down for another 5 years mandate. 

Uncle Remus's picture

How's Walternate?

No, I didn't junk you.

Financial_Guardian_Angel's picture

So did I. Worth every second doing it.

HamyWanger's picture

Now, I'm accustomed and pretty much insensitive to bigots who hate me and my message of love.

I'll always repeat that haters of socialism, of gun control and haters of the economic recovery have no place in the XXIst century America. They are intolerant and lunatic dudes living in the past, such as this redneck family:

redpill's picture

Don't let the racists get you down, Hamy

Miles Kendig's picture

You musta got some sweet vinegar with the DouscheBank Monday staff mixer today Harry.  You're a bit sweeter than usual.  No wonder you're so edgy.  Realizing that most all Americans detest a door to door bible salesman that is only looking at his margin must put a big ? on your chances of making quota in a tougher no/low volume sledding environment.  Hope ya make mission and don't roll too many donuts Harry.

Marla And Me's picture

Miles, it's Hamy, not Harry.  There are way too many copy-cat jokster accounts for it to be a coincidence.  What a country we have... the Tylers' hard work and innovation makes it possible for paid trolls to make a living off their sweat equity.  Leaches abound!

Miles Kendig's picture

Thanx for the quality check and timely observation.  Indeed.  Leaches everywhere following Bastiat's dictum that it is easier to live off the productive labor of others rather than suffer the pain of production oneself.  There is a difference between leaching and simply enjoying the tasty waves and cool buzz provided by the ever timely harvest of fine nugs of wonk-a-liciousness that abound in these articles.

kingwallop's picture

You Sir are a full on NAZI

rocker's picture

Sometimes Hamy your just plain stupid. It depends what you call socialism and what you call economic recovery.

For most there is No recovery, unless your a banker or associate.  And it is not socialism if one who worked in a factory at a job of labor and paid in to social security to expect benefits. For what they slaved to providee for themselves.

The problem is, this is what the Pukes want to steal from their slave labor participants. The very money that they paid into the system.  They print for many things. The FED can refurbish these funds too. Just like they did for the undeserving Bankster criminals of Wall Street.   

But, I will say this, If your wages exceed 1 million a year or your assets are worth more than than 5 million, you do not need Social Security. It is suppose to be a safety net as it should be.  If you can not understand this, your just plain Greedy.  As greedy as Lloyd Blankfien, Hank Paulson, and Neel Kashkari.

rocker's picture

Just another footnote. We can't take guns from honest people. Because it will be the dishonest who will have them and you will not. Would you take them from Cops or do you believe they are all honest.  LOL on that.

StychoKiller's picture

Look up the following word in Webster's:  "Sarcasm"

It'll save ya a lot of typing!

NotApplicable's picture

So you're saying that it's worth every second to demonstrate that you don't understand hyperbole?


You've been trolled. Hook, line and sinker.

Did ya even taste the bait?