“Healthcare and the 1992 fiscal year federal budget


As a tax consultant and a confirmed “packrat,” I keep all of the tax booklets I use over the years. The following information including the above pie chart is from the back page of the 1993 1040 Forms and Instructions booklet published by the federal government as Package 1040-5 Cat. No. 12117M. The federal government’s 1992 fiscal year runs from October 1, 1991 through September 30, 1992.

“Major Categories of Federal Income and Outlays for Fiscal Year 1992

On or before the first Monday in February of each year, the President is required by law to submit to the Congress a budget proposal for the fiscal year that begins the following October. The budget plan sets forth the President’s proposed receipts, spending, and the deficit for the Federal government. The plan includes recommendations to change, eliminate (almost never happens—my addition), and add programs (almost always happens—my addition). After receipt of the President’s proposal, the Congress reviews the proposal and makes changes. It first passes a budget resolution setting its own targets for receipts, outlays, and the deficit. Individual spending and revenue bills are then enacted consistent with the goals of the budget resolution (Or, the President proposes and the Congress disposes. Congress is the Constitutional body that determines the amount collected and the amount spent—not the President!—my addition)

In fiscal year 1992 (which began on October 1, 1991, and ended on September 30, 1992), Federal income was $1,090.5 billion ($1,090,500,000,000—my addition) and outlays were $1,380.9 billion ($1,380,900,000,000—my addition), leaving a deficit of $290.4 billion ($290,400,000,000—my addition).

Federal Income

Income and social insurance taxes are, by far, the largest source of receipts. In 1992, individuals paid $476 billion in income taxes ($476,000,000,000—my addition) and corporations paid $100.3 billion ($100,300,000,000—my addition). Social security and other insurance and retirement contributions were $413.7 billion ($413,700,000,000—my addition). Excise taxes were $46.6 billion ($46,600,000,000—my addition). The remaining $55.0 billion ($55,000,000,000—my addition) of receipts were from Federal Reserve deposits, customs duties, estate and gift taxes, and other miscellaneous receipts. (These figures do not total $1,090.5 billion ($1,090,500,000,000—my addition) due to rounding.)

[So, in descending order the amount of money collected was:

1) $476,000,000,000 individual income taxes
2) $413,700,000,000 social security and others
3) $100,300,000,000 corporation taxes
4) $055,000,000,000 other
5) $046,600,000,000 excise taxes—my addition]

Federal Outlays

About 79% of total outlays were financed by tax receipts and the remaining 21% were financed by borrowing. Government receipts and borrowing finance a wide range of public services. The following is the breakdown of total outlays for fiscal year 1992:

1. Social security, Medicare, and other retirement: $469.7 billion ($469,700,000,000—my addition). These programs were 33% of total outlays. These programs provide income support for the retired and disabled and medical care for the elderly.

(So,

$469,700,000,000 social security, etc. outlays MINUS
$413,700,000,000 social security, etc. income

$056,000,000,000 in the red for fiscal year 1992 when comparing income and outlays for social security, etc.—my addition)

2. National defense, veterans, and foreign affairs: $348.6 billion ($348,600,000,000—my addition). About 21% of outlays were to equip, modernize, and pay our armed forces and to fund other national defense activities; about 2% went for veteran benefits and services; and about 1% went for activities, including military and economic assistance to foreign countries and the maintenance of United States embassies abroad.

3. Net interest: $199.4 billion ($199,400,000,000—my addition). About 14% of total outlays were for net interest payments on the public debt.

4. Physical, human, and community development: $139.5 billion ($139,500,000,000—my addition). About 10% of total outlays were for agriculture, natural resources and environmental programs; transportation programs; aid for elementary and secondary education and direct assistance to college students; job training programs; deposit insurance, commerce and housing credit, and community development; and space, energy, and general science programs.

5. Social programs: $235.6 billion ($235,600,000,000—my addition). The Federal government spent 10% of total outlays to fund Medicaid, food stamps, aid to families with dependent children, supplemental security income, and related programs. About 7% was spent for health research and public health programs, unemployment compensation, assisted housing and social services.

6. Law enforcement and general government: $27.4 billion ($027,400,000,000—my addition). About 2% of total outlays were for judicial activities. Federal law enforcement, and prisons; and to provide for the general costs of the federal government, including the collection of taxes and legislative activities.

These pie charts show the relative sizes of the major categories of Federal income and outlays for fiscal year 1992.”

[So, in descending order the amount of money spent was:

1) $469,700,000,000 Social security, Medicare, etc.
2) $348,600,000,000 National defense, veterans, etc.
3) $235,600,000,000 Social programs
4) $199,400,000,000 Net interest
5) $139,500,000,000 Physical, human, and etc.
6) $027,400,000,000 Law enforcement and general government —my addition]

At the top of the list, Social security, Medicare, and other retirement expenses! Third on the list, social programs including Medicaid and other assistance programs generally going directly to selected families usually through State government. Much of this expense is directed toward the so-called “War on Poverty” started in the 1960’s. We are still “fighting” that “war” today with seemingly little success.

So, in the 1992 fiscal year:

$1,380,900,000,000 Total Federal outlays MINUS
$1,090,500,000,000 Total Federal income

$0,290,400,000,000 in the red for fiscal year 1992

However, not to worry. That deficit was for the 1992 fiscal year with a total outlay of $1,380,900,000,000. Already for this year’s deficit we have reached $1,270,000,000,000 which is not quite as large as the entire budget for 1992. However, not to worry. The entire deficit for all of this year is projected to be at least $1,500,000,000,000 which, if reached, will be greater than the entire federal budget for 1992. However, not to worry. We have not yet begun to over spend for the newly proposed nationalized healthcare program championed by the Barack Hussein Obama Administration.

Does anyone in the government actually care about deficit spending?