In a poll of U.S. taxpayers, 95% of respondents had no idea how much the country spends on foreign aid, which is much less than 1%. It just shows that although rational people can disagree on how our tax money should be spent, we are not having a rational debate because most of us have no clue what it is really being spent on. A taxpayer receipt is a simple idea to help cure this problem. Ideally this should be done by the IRS or Treasury Department, but the White House has stepped in to do it since nobody else will.

I picked a hypothetical married couple with children making an income of $80,000 per year. There are a million different ways you can slice it. But no matter what you do, the biggest categories jump out at you. Income tax is only about 40% of what the government takes in from this family, with Social Security and Medicare taxes making up the other 60%. Pensions for retired people make up the majority of how the money is spent, with Social Security alone making up almost half. Even without an offical public health care system, the federal government spends a lot on health care – almost 20% of all the money spent between Medicare (for older people) and programs to help lower-income people (Medicaid and children’s health insurance programs mostly). Of course, state and local governments also tax and spend on health care, which is not reflected here.

The military makes up around 10% of all federal spending. If you add veteran’s benefits (I’m double counting here, since these include retirement and health care) and homeland security, that number comes to more like 13%.

So however you slice it, the big numbers are retirement, health care, and defense. If we want to make significant changes in either the amount of tax, or the outcomes of government programs, we should focus most of our debating energies in these areas.