On this page is a visualization of the sources for tax revenue collected by the IRS between fiscal years 1960-2013 in the United States. All data in the visualization comes from the IRS’s 2013 Data Book. Apologies to our cell phone readers – you should view this on a tablet, laptop, or desktop (or something […]
If you’re looking for a place to put your emergency fund, your search has come to an end: the oft-overlooked Health Savings Account. Today we discuss the idea of the health savings account retirement fund, and explain the IRS rule which makes it all possible. Keeping Something in Reserve A common refrain heard from the […]
“First they came for the communists, and I didn’t speak out because I wasn’t a communist. Then they came for the socialists, and I didn’t speak out because I wasn’t a socialist. Then they came for the trade unionists, and I didn’t speak out because I wasn’t a trade unionist. Then they came for me, […]
About a month ago, my colleague Cameron penned an article about the Mortgage Interest Deduction – namely, whether it is a good idea or not. For an itemizing taxpayer in the 25% bracket, he pointed out, “The bank receives 4.0% interest, the homeowner pays 3.0% and the taxpayer is left footing the 1.0% difference.” Right – and the bank ends up pocketing the subsidy.
Our tax visualization last time was interesting, but this one might convey more data. Once again, or source for tax data is the IRS’s publication 2010 Data Book. Just like last time, note these are tax collections, and the IRS annual year ends in September. True revenue is after all refunds and credits are finalized, but this data is interesting to see the amount of tax collected – and how it makes it’s way to Uncle Sam.
“In this world nothing can be said to be certain, except death and taxes.” – Benjamin Franklin
What is less certain is what those taxes will be called – the tax code continues to get more and more complex every year. The IRS puts out a data report annually about their fiscal year which includes tax collections by the type of tax (Table 6). These numbers are not the final numbers – those numbers are arrived at once all credits and refunds are complete. However, the chart that results is instructive, and it allows us to visualize how the tax code has change over the years to collect revenue from the country in different ways.
In the chart that follows, you can turn off individual categories so you can see how individual categories stack up. Note the relative size of the estate and gift taxes. For the amount of interest they receive, they are an insignificant portion of total tax collections.
Carnivals and links for the week!
What would you say if someone offered you money to report your tax-evading friends? If you are staring at the screen incredulously, allow me to introduce you to Uncle Sam, who wants to make it worth your while to report on your loose-moraled tax cheat friends (and acquaintances!). If you know someone who is particularly dastardly, you could even make bank- the IRS will reward you 15% of the underpaid amount, up to a whopping $10 million!