In 2018, Americans spent more on taxes than on food, clothing, and health care combined

In 2018, Americans spent more on taxes than on food, clothing, and health care combined
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[Ed. – And that’s even with the reduction in income tax rate.  As incomes go up, so do tax payments.  As consumption goes up, so do tax payments.  Jeffrey has some previous years for comparison; in all of them, taxes amounted to more than food, clothing, and health care expenses too.  But the difference between the two was less.  Only about half the tax bill comes from income tax, BTW.  With the very small annual number for “other taxes,” that category doesn’t seem to include the federal gasoline tax, raising the question whether the state tally includes the state gas taxes.  There’s probably more out there uncounted.]

“Consumer units,” says BLS, “include families, single persons living alone or sharing a household with others but who are financially independent, or two or more persons living together who share major expenses.”

In 2018, according to Table R-1, American consumer units spent an average of $9,031.93 on federal income taxes; $5,023.73 on Social Security taxes (which the table calls “deductions”); $2,284.62 on state and local income taxes; $2,199.80 on property taxes; and $77.85 on what BLS calls “other taxes.”

The combined payments the average American consumer unit made for these five categories of taxes was $18,617.93.

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At the same time the average American consumer unit was paying these taxes, it was spending $7,923.19 on food; $4,968.44 on health care; and $1,866.48 on “apparel and services.”

These combined expenditures equaled $14,758.11.

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