The United States Treasury divides government spending into required and discretionary spending, as well as debt interest. Mandatory spending is spending that Congress legislates for outside of the regular appropriations process, and it accounts for around 90% of federal expenditures (Himmelstein & Woolhandler, 2016). Discretionary spending is the component of the budget determined by Congress through annual appropriations.
Throughout the last five years, federal spending has remained quite constant, with just minor fluctuations. From 2011 and 2016, federal government spending varied from $ 3.5 trillion to $ 3.85 trillion (Himmelstein & Woolhandler, 2016). It is a show of stability on the side of the government where it has managed to keep the national inflation levels in check. The government manages to fund much of its spending through taxation.
Income taxes over the past five years have as well enjoyed stability although the federal government revenue has been increasing strongly over the years. Higher revenues for the federal government could translate into higher taxation in the economy. Although the government has been collecting taxes in large scales, the income tax has not been subject to significant fluctuations. Instead, the government has a broader base of tax collection as compared to the earlier years. Income tax collection in the United States is estimated to average at $ 2.6 trillion, which is relatively stable as compare to $ 2.67 trillion collected in the year 2015 (Himmelstein & Woolhandler, 2016). Income tax stability been the case for the past five years where stability has been experienced in terms of income tax rates. There have not been massive fluctuations over the time, and this can be attributed to the stable economy of the United States.
Reference
Himmelstein, D. U., & Woolhandler, S. (2016). The current and projected taxpayer shares of US health costs. American journal of public health, 106(3), 449-452.
