NTU: Where Is Your Money Going?

by:Jordan Forbes
May 14, 2010

Ever wonder where your hard-earned money is going? Most of us have taxes automatically deducted from our pay checks, so it can be hard to know just how much we are handing over to Uncle Sam.

This calculator from USA Today will give you a rough estimate of your federal tax bill. Just input your salary and boom, it lays it out for you within a matter of seconds. More interestingly, you can see how tax rates and spending patterns have changed over time – from 1940 through 2010, to be exact.

A few things to keep in mind:
How far would your salary have gone in 1950?
How were spending priorities in the 1960s different from today?
How does your effective tax rate (percentage of your salary you pay in taxes) change as you make more or less money?
Have fun! Hopefully, it doesn’t dishearten you too much.

hat tip National Taxpayers Union