Broker Check
Alex Witt, CFA
Alex Witt, CFA
Prosperian Wealth Management Financial Advisor
https://www.prosperianwealth.com/ (937) 714-7649

A graduate of The Ohio State University with a degree in Accounting, Alex has spent his entire professional career in the financial services industry. The first 4 years of his career were in investment research covering Consumer stocks at Capital Group, Evercore ISI, and RBC Capital Markets in New York. After being introduced to Prosperian as a client, Alex joined the team in July of 2021 because of a desire to work in a role where he could make a more direct impact on the personal, professional, and financial lives of young professionals and families.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Prosperian Wealth Management, LLC is not an affiliate or subsidiary of PAS or Guardian. Prosperian Wealth Management, LLC is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. AR Insurance License Number - 19960171, CA Insurance License Number - 4157156.

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What Do Your Taxes Pay For?

Tax Read Time: 2 min

Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their money.

The average household spends more on taxes than on groceries, clothing, or healthcare. In fact, 11% of our income, on average, goes to personal income taxes, which doesn’t include sales tax, property tax, Social Security payments, or Medicare payments. So what do we get in return?1

The accompanying chart breaks down the $6.8 trillion in federal spending for 2024 into major categories. One of the biggest categories is Social Security, which consumes 22% of the budget. Defense takes 13% of the budget, and 13% goes to Medicare.2

Are taxes one of your biggest budget items? Take steps to make sure you’re managing your overall tax bill. Please consult a tax professional for specific information regarding your individual situation.

Pieces of the Federal Pie

Over half of 2024 federal spending was used for Social Security, Medicare, defense, and Medicaid.

Source: CBO.gov, March 20, 2025. Figures represent total outlays for the 2024 fiscal year, as reported by the Congressional Budget Office.

1. ValuePenguin.com, January 10, 2024
2. CBO.gov, March 20, 2025

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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