The United States Fiscal Year 2016 Is From October 1, 2015,

1175 WordsApr 4, 20175 Pages
The United States fiscal year 2016 is from October 1, 2015, to September 30, 2016. The requested budget was submitted to the 114th Congress. Congress creates a new budget for the United States every year. This process is also called the appropriation process. These bills specify how much money will go to the different government agencies and government programs. Congress will then have to pass legislation that will provide the federal government the authority to spend the money giving to them. There are five key steps in the budgeting process 1. The President will submit a budget request to Congress. This is just a proposal. 2. The House and Senate pass budget resolutions They must vote on their own budget resolutions. 3. House and…show more content…
The money for the budget comes from income taxes, payroll taxes, and corporate income. These are the three main sources of the budget’s revenue. Income taxes are that the government collects from the American people. Income taxes make up the federal government’s largest revenue source. Payroll taxes are designated as trust funds. As trust funds, the money collect can only be used for a very specific purpose such as Social Security. Corporate taxes are paid by companies, though a marginal tax rate anywhere from fifteen percent to thirdly-five percent depending on how much profit the corporation made. There are also a couple of other types of taxes that add to the revenue such as excise taxes and miscellaneous taxes. In 2016, individual income tax made up forty-nine percent, which is up five percent from 2015. Payroll taxes made up thirty-three percent, which was also up five percent from the following year. This was due to the growth in people wages and salaries. Corporate taxes made up nine percent, which fell thirteen percent from the following year. Excise taxes made up three percent and miscellaneous taxes rounded the budget at seven percent. The total revenues for the government in 2016 were $2.99 trillion dollars. So, where does the money go? Below I will just highlight some of the bigger areas of where the money goes. Healthcare accounts for more than $1.1 trillion of the federal budget. This is caused by programs like Medicare which covers
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