US Taxes

Tax Perspectives

Freedom Isn't Free. Most Americans Can't Afford It.

The Most Embarrassing Fact About America Isn't The Deficit. It's Who Pays For It.

Americans love to argue about government spending.

We argue about defense. We argue about veterans. We argue about foreign aid, welfare, healthcare, education, infrastructure, student loans, and government waste.

What we almost never argue about is arithmetic.

The federal government is expected to spend roughly $7.5 trillion in 2026—about $22,000 for every man, woman, and child in the United States.

Those numbers should make every American uncomfortable.

Not because government spending is inherently bad.

Not because every federal program is wasteful.

But because they force us to confront a reality that almost nobody wants to discuss:

Most Americans do not contribute enough federal income tax to cover an equal-share portion of the government they consume.

That statement is not an ideological opinion.

It is arithmetic.

America Has A Math Problem, Not A Partisan Problem

We've created a political culture where nearly everyone has strong opinions about spending, but remarkably few people ask what it costs.

Under a simple elementary-school definition of fairness—everyone pays the same share—the numbers become eye-opening.

Military and veterans spending alone approaches $1.4 trillion, or approximately $4,881 for every person in the country and more than $10,000 per federal income taxpayer.

The broader federal budget, excluding Social Security and Medicare which are supposed to be funded through payroll taxes, still costs roughly $13,800 per person annually.

At the median income level, a taxpayer contributes approximately $2,450 in federal income taxes.

That amount does not cover one person's proportional share of military spending.

It does not cover one person's proportional share of interest on the national debt.

It does not come close to covering one person's proportional share of overall federal spending.

The median American simply does not finance an equal-share portion of the federal government.

Neither does the typical household.

According to my calculations, an individual generally needs income around $100,000 before contributing enough federal income tax to cover a per-person share of non-entitlement federal spending. Married households with two children often require income approaching $400,000 before contributing enough federal income tax to cover the per-capita share of a family of four.

Whether you think that is fair or unfair is a political opinion.

The arithmetic itself is not.

We Don't Pay Nearly As Much In Federal Taxes As We Think We Do

Americans routinely describe themselves as "overtaxed."

Yet when the numbers are laid out, that claim deserves scrutiny.

The federal income tax system is highly progressive, but most people focus on tax rates rather than actual dollars paid.

The bottom 50% of taxpayers pay an average of roughly $2,189 in federal income taxes. A median-income return contributes approximately $2,450.

Even including payroll taxes, most Americans contribute far less than an equal-share portion of federal spending.

To be clear, this analysis intentionally uses a strict equal-share standard.

Critics may reasonably object that individuals should not be responsible for 100% of federal spending. Corporate taxes, tariffs, excise taxes, and other federal receipts contribute meaningful revenue.

Fine.

Let's be generous.

Let's assume individuals should only be responsible for 85% of federal spending and the remaining 15% comes from other sources.

The result barely changes.

The overwhelming majority of Americans still do not contribute enough federal income tax to finance an equal-share portion of federal expenditures.

You can debate whether that is the correct tax structure.

You cannot honestly deny the arithmetic.

The Military Spending Contradiction

The most intellectually inconsistent position in modern American politics may be enthusiastic support for massive military spending combined with opposition to paying for it.

We are constantly told that "freedom isn't free."

Fine.

Then show me the bill.

If freedom is not free, why do so many Americans oppose the taxes required to fund the military they claim is indispensable?

If we believe that maintaining global military dominance, hundreds of overseas installations, carrier strike groups, nuclear deterrence, and a defense budget approaching a trillion dollars annually is essential (including veteran costs we’re already well above a trillion), then we should be willing to pay for it honestly.

Instead, we borrow.

And borrow.

And borrow again.

And this year, we will borrow $2 Trillion, or $5,800 per person, as we careen down Trump’s glidepath to increase military spending by over 50% in just four years.

A nation using debt to finance routine operations is behaving less like a disciplined superpower and more like a household paying its grocery bill with a credit card.

Here's the uncomfortable reality:

Half of Americans earning roughly $50,000 or less cannot contribute even half of one person's equal-share portion of military spending through their federal income taxes.

Yet many of those same Americans have very strong opinions about military policy.

That may be their right.

But perhaps we should spend less time shouting slogans and more time doing math.

The Tax-Cut Religion Has Failed Its Own Test

For decades Americans have been told that lower tax rates inevitably create stronger economic growth.

The historical record simply does not support that level of certainty.

In 1993, President Bill Clinton signed legislation that raised the top federal income tax rate from 31 percent to 39.6 percent.

Critics predicted slower growth, weaker investment, fewer jobs, and economic stagnation.

Instead, the United States experienced one of the strongest periods of economic growth in modern history.

The economy grew at roughly 4 percent annually.

More than 22 million jobs were created.

Unemployment fell dramatically.

Federal budget deficits eventually became federal budget surpluses.

Does this prove that higher taxes create economic growth?

No.

Serious people should not make that argument.

Technology, productivity, globalization, demographics, monetary policy, and many other factors contributed to the expansion.

But it absolutely disproves the simplistic claim that higher taxes automatically destroy growth.

America already ran that experiment.

The economy did not collapse.

In fact, it thrived.

The burden of proof therefore belongs to those claiming that every tax increase will cripple economic performance.

History does not grant them that certainty.

The Real Choice

Many Americans want generous entitlement programs.

Many Americans want the world's largest military.

Many Americans want lower taxes.

Arithmetic permits any two.

Arithmetic does not permit all three.

The United States is currently running deficits measured in trillions, not billions.

The only mathematically realistic solutions involve addressing the categories where the money actually exists.

That means defense.

That means entitlements.

That means taxes.

Trying to solve a multi-trillion-dollar budget problem by eliminating programs that cost millions or a few billion dollars is the fiscal equivalent of trying to lose weight by removing a single french fry from your dinner plate.

It may feel productive.

It does not change the outcome.

The Uncomfortable Conclusion

America's budget increasingly resembles a group project.

Everyone has opinions.

Everyone has demands.

Everyone has a list of things someone else should pay for.

Very few people stop long enough to ask whether they themselves contribute enough to finance the government they insist upon.

Maybe the answer is significantly reducing military spending.

Maybe the answer is increasing taxes.

Maybe the answer is both.

But the one thing we cannot continue doing is pretending arithmetic is optional.

Because unlike politicians, budgets cannot lie forever.

Eventually the numbers win.

If Freedom Isn't Free, then Americans Can't Afford Freedom

$7.5 Trillion is how much the Federal Government will Spend this year, or $22,000 for every man, woman, and child in the country. 85% of receipts come from personal income taxes (50%) and payroll taxes (35%). Excluding Social Security and Medicare, which are supposed to be fully funded through those payroll taxes, the budget drops to $4.8 Trillion, or $13,800 per person.

Funding just the military and veterans, is $1.4 Trillion or $4,881 per person and $10,478 per taxpayer. The bottom 50% of taxpayers, roughly half of America, pay an average of just $2,189 in Federal income taxes. At the median income of $50,000, a tax return provides just $2,450 of income taxes on average.

Half of Americans, who are families and individuals earning $50,000 or less in Adjusted Gross Income can't afford to fund one half of a single person's equal share of military spending.

American has an absurdly bloated military and a tax problem.

We don't pay nearly as much in Federal taxes as we think we do.

We definitely don't pay nearly enough to cover our budget. In just 2026, we're going to borrow $5,800 per man, woman, and child. And while we pay a lot of different taxes, the overwhelming majority of taxpayers pay nothing close to the per capita or per taxpayer amount required.

In 2026, we'll spend $22,000 per person and $46,875 per taxpayer. Excluding Social Security and Medicare, which should be funded through payroll taxes, those numbers are $13,840 and $29,709.

In order to fund the per person amounts, a single person needs to have over $100,000 of income, earning in the top 10% of single, and a married couple with two children would need to earn close to $400,000 and also be near the top 10% of married earners.

About 90% of Americans are paying less than their per person share of the budget.

If 90% can't afford it -- we either spend too much, tax too little, or both. Shouldn't the average person, the 50th percentile, or at least the 75th percentile be able to contribute their equal share?

What are we people actually paying?

Tax Comparison by Income Percentile and Filing Status

Tax Type	Individual 50th ($35,000)	All Filing Statuses 50th ($50,000)	Married Jointly 50th ($105,000)	Individual 75th ($65,000)	Married Jointly 75th ($185,000)	Individual 90th ($100,000)	Married Jointly 90th ($387,500)
Federal	1,995	2,450	6,300	5,525	15,725	13,000	50,375
State	1,505	2,150	5,145	2,795	7,030	4,500	12,013
Local (rare)	315	450	945	585	1,665	900	3,488
Social Security	2,170	3,100	6,510	4,030	11,470	6,200	19,375
Medicare	508	725	1,523	943	2,683	1,450	7,363
Real Estate	1,400	2,000	4,200	2,600	7,400	4,000	15,500
Sales	1,225	1,750	3,675	1,593	4,533	1,400	5,425
Gasoline	275	400	500	275	500	275	500
Personal Property	140	200	420	228	648	300	969
Total Federal Taxes Paid	4,673	6,275	14,333	10,498	29,878	20,650	77,113
Total Taxes Paid	9,533	13,225	29,218	18,573	51,653	32,025	115,006
Total Rate of Income	27.2%	26.5%	27.8%	28.6%	27.9%	32.0%	29.7%

Note that while the Federal Income Tax system is very progressive, when considering all the other state and local taxes being paid, most of them are very regressive, which is why most Americans end paying about 30% in total taxes, even if they contribute a very small amount at the federal level.

Taxes Paid by Individuals in the United States

Federal Taxes

• Federal income tax - Tax on wages, business income, interest, dividends, capital gains, and other income.
• Social Security tax - Funds Social Security retirement, disability, and survivor benefits.
• Medicare tax - Funds Medicare healthcare benefits.
• Additional Medicare tax - Additional Medicare tax on higher-income earners.
• Self-employment tax - Combined employee and employer Social Security and Medicare taxes for the self-employed.
• Federal excise taxes - Taxes embedded in products such as gasoline, alcohol, tobacco, firearms, and airline tickets.
• Estate tax - Tax on large estates at death.
• Gift tax - Tax on large transfers of wealth during life.

State Taxes

• State income tax - Tax on individual income in most states.
• State sales/use tax - Tax on purchases of goods and certain services.
• State gasoline tax - Tax on motor fuels.
• State excise taxes - Taxes on products such as alcohol, tobacco, marijuana, lodging, and utilities.
• Vehicle registration taxes and fees - Annual taxes and fees on vehicles.

Local Taxes

• Real estate (property) tax - Tax on land and buildings.
• Personal property tax - Tax on vehicles, boats, trailers, and other personal property in some jurisdictions.
• Local sales tax - Additional sales tax imposed by cities, counties, and special districts.
• Local income tax - Income tax imposed by some cities and counties.
• Transfer/recording taxes - Taxes and fees on real estate transactions.
• Special assessments - Charges for local infrastructure improvements.
• Tolls and user taxes - Charges for roads, bridges, tunnels, and similar facilities.

Taxes Generally Not Paid Directly by Individuals

• Federal unemployment tax (FUTA) - Employer tax funding unemployment insurance.
• State unemployment insurance taxes (SUTA/SUI) - Employer taxes funding unemployment benefits.
• Employer Social Security tax - Employer share of Social Security payroll taxes.
• Employer Medicare tax - Employer share of Medicare payroll taxes.
• Corporate income tax - Tax on corporate profits.
• Gross receipts tax - Tax on business revenue in some states.
• Franchise tax - Tax for the privilege of doing business in some states.
• Business license taxes and fees - Taxes and fees imposed on businesses.

Economic Note

• Many business taxes are legally paid by companies but may be passed on to individuals through higher prices, lower wages, or lower investment returns.

Alternate AI-produced Taxes Paid by Income and Filing Status

Tax Type	Indiv. 25% ($25k)	Indiv. 50% ($50k)	Indiv. 75% ($90k)	HH 25% ($42k)	HH 50% ($82k)	HH 75% ($145k)	Single ($100k)	HH ($200k)	Self-Employed ($100k)
Net Federal Income Tax	$0	$4,000	$10,000	$0	$4,500	$13,500	$12,500	$27,500	$12,500
Social Security Tax	$1,550	$3,100	$5,580	$2,604	$5,084	$8,990	$6,200	$10,918	$12,400
Medicare Tax	$363	$725	$1,305	$609	$1,189	$2,103	$1,450	$3,800	$2,900
Real Estate Tax	$800	$1,800	$3,000	$1,200	$2,500	$4,500	$3,500	$6,000	$3,500
Sales Tax	$1,400	$2,800	$5,000	$2,300	$4,500	$7,800	$5,600	$11,200	$5,600
Gasoline Tax	$300	$300	$300	$300	$300	$300	$300	$300	$300
Personal Property Tax	$100	$250	$500	$200	$500	$1,000	$600	$1,200	$600
Approximate Total	$4,513	$12,975	$25,685	$7,213	$18,573	$38,193	$30,150	$60,918	$37,800