2004 Instructions for Form 1040 (ALL) - Supreme Law Firm

Major Categories of Federal Income and Outlays for Fiscal Year 2003
Income and Outlays. These pie charts show the relative sizes of the major categories of federal income and outlays for fiscal year 2003.
Income
Social security, Medicare,
and unemployment and other
retirement taxes
33%
Personal income
taxes
37%
Outlays
Law enforcement and
general government
3%
Social security,
Medicare, and other
retirement 1
37%
Social
programs 4
21%
Borrowing to
cover deficit
17%
Corporate
income taxes
6%
Excise, customs, estate,
gift, and miscellaneous
taxes
7%
Physical, human,
and community
development 3
10%
Net interest on
the debt
7%
National defense,
veterans, and foreign
affairs 2
22%
On or before the first Monday in February outlays were $2.2 trillion, leaving a deficit 3. Physical, human, and community
of each year, the President is required by of $0.4 trillion. development: These outlays were for agrilaw
to submit to the Congress a budget
Footnotes for Certain Federal
culture; natural resources; environment;
proposal for the fiscal year that begins the
Outlays
transportation; aid for elementary and secfollowing
October. The budget plan sets
ondary education and direct assistance to
forth the President’s proposed receipts, 1. Social security, Medicare, and college students; job training; deposit inspending,
and the surplus or deficit for the other retirement: These programs provide surance, commerce and housing credit, and
Federal Government. The plan includes income support for the retired and disabled community development; and space, en-
recommendations for new legislation as and medical care for the elderly.
ergy, and general science programs.
well as recommendations to change, elimi-
2. National defense, veterans, and fornate,
and add programs. After receiving the
4. Social programs: About 14% of total
eign affairs: About 18% of outlays were to outlays were for Medicaid, food stamps,
President’s proposal, the Congress reviews
equip, modernize, and pay our armed temporary assistance for needy families,
it and makes changes. It first passes a
forces and to fund other national defense supplemental security income, and related
budget resolution setting its own targets for
activities; about 3% were for veterans benreceipts,
outlays, and the surplus or deficit.
programs; and the remaining outlays were
efits and services; and about 1% were for for health research and public health pro-
Next, individual spending and revenue bills
international activities, including military grams, unemployment compensation, as-
that are consistent with the goals of the
and economic assistance to foreign counbudget
resolution are enacted.
sisted housing, and social services.
tries and the maintenance of U.S. embas-
In fiscal year 2003 (which began on Oc- sies abroad.
tober 1, 2002, and ended on September 30,
2003), federal income was $1.8 trillion and
Note. The percentages on this page exclude undistributed offsetting receipts, which were $54 billion in fiscal year 2003. In the budget, these receipts are offset against
spending in figuring the outlay totals shown above. These receipts are for the U.S. Government’s share of its employee retirement programs, rents and royalties on the
Outer Continental Shelf, and proceeds from the sale of assets.
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