Where Does All Our Money Go?

Well the biggest taker of our funds is taxes. We are taxed on everything, everyday, everywhere.

My husband and I are in the 25% for income taxes, meaning that for every dollar we make 25 cents goes to the federal government. And 6.84% goes to the state income tax.

We also own a home so we pay property tax of 26.83%.

We pay sales tax on items we buy at 7%. FYI Sales taxes also encompass money paid to the government for tolls, licenses, and other minute fees.

So let’s add this up:
Federal income tax: 25%
State Income tax: 6.84%
Property tax: 26.83%
Sales Tax: 7%

Total: 65.67% at some time or another this is what we will pay out in taxes per year. Or as the Bureau of Economic Research study says on average 40% of American money goes to taxes each year. Like other americans we pay more then our fair share.

Now go invest that 60 cents and the government will tax you again.

Want to know how the Federal government spends you hard earned dollar on? Then read Where Your Federal Income Tax Goes

Did you read it? So are you now wonder were did the almost 12 trillion in debt go? Well it went nowhere and to be totally honestly there is no good or logical reason for being distraught over the US national debt, because it is impossible to pay off the debt.

But how can that be? Our government is doing that right now? What is so ironic about the National debt is it is a debt made from money that does not exists. The US gets it's money from the Federal Reserve and the Federal Reserve calculates the supply of money from the current bills and currency in circulation, funds held in banks and in CD, money markets and mutual funds etc.

But what you probably don't know is our financial systems are based on fractional reserve banking. What the hell is that you say?? Example: I deposit $100.00 into my local bank. They don’t keep my $100 in the bank. They keep only a fraction of it 10% (assuming the required reserve is 10%) and lend the rest to someone else ($90. If that person then deposits that money, then their bank keeps a fraction and lends out the rest ($81). As this process continues a bank can turn $100 into $1000 ($100+$90+$81+$72.50 = $1000), when the reality is $100 is all that really existed. and if some banks have no reserve requirement at all, I think you get the picture. Contrary to what we all believe you CAN make money out of thin air.

This lovely system we have created as made it so the only way to get more money is to create more debt which makes it worse. If you owe more money than has ever been created how can you pay it back? You can’t. So the odd saying “money isn’t worth the paper it was printed on” rings true.

Unless you are willing to speak up and demand the system be changed, you might as well quit complaining about the National debt, because it is impossible to pay it off!!