🔎 Market Mysteries

Don't take budgeting advice from politicians. Congress often risks government shutdowns due to disagreements on the annual budget. It consistently spends more than it earns, accumulating debt with increasing borrowing costs. The government is unwilling to cut or restructure the expenses that dominate the budget. It’s time for a more responsible financial plan.

The government earns its income through taxes, taking a share of the money individuals and businesses make each year. Personal income tax provides nearly half of all tax revenue. Social Security and Medicare payroll taxes, the second-biggest source at 36%, are automatically deducted from employees' paychecks and matched by employers. The funds are then used to finance the Social Security and Medicare programs, providing benefits for retired individuals and those who require medical care. Corporate income taxes contribute to about 12% of revenue; estate taxes, trade tariffs, and other things make up the rest.

Subscribe to Scoop Insiders to read the rest.