Your Guide to America’s Finances (2024)

FAQs

What is America's main source of income? ›

Sources of Federal Revenue

So far in FY 2024, individual income taxes have accounted for 53% of total revenue while Social Security and Medicare taxes made up another 33%. Government revenue also comes from payments to federal agencies like the U.S. Department of the Interior. Have you visited a national park recently?

Nearly half of mandatory spending in 2022 was for Social Security and other income support programs such as the Child Tax Credit, food and nutrition assistance, and federal employee benefits (figure 3). Most of the remainder paid for the two major government health programs, Medicare and Medicaid.

The financial position of the United States includes assets of at least $269 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP).

The federal government borrows money from the public by issuing securities—bills, notes, and bonds—through the Treasury. Treasury securities are attractive to investors because they are: Backed by the full faith and credit of the United States government. Offered in a wide range of maturities.

Real median household income was $74,580 in 2022, a 2.3 percent decline from the 2021 estimate of $76,330 (Figure 1 and Table A-1).

It began rising at a fast rate in the 1980's and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.

The federal government collects revenue from a variety of sources, including individual income taxes, payroll taxes, corporate income taxes, and excise taxes. It also collects revenue from services like admission to national parks and customs duties.

What does it take to be considered rich in America? It depends a lot on where you live. The richest of the rich live in Washington, D.C., where it takes a salary of $719,000 to land in the top 5% of earners.

For context, 31 billionaires are each worth more than the federal government's $38.8 billion in cash, according to the Bloomberg Billionaires Index. Some of them, like fashion mogul Bernard Arnault – are worth a lot more. Arnault, the chairman of luxury goods maker LVMH, has a net worth estimated at $193 billion.

Net worth is the difference between the values of your assets and liabilities. The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.

Will the US ever get out of debt? ›

Under current policy, the United States has about 20 years for corrective action after which no amount of future tax increases or spending cuts could avoid the government defaulting on its debt whether explicitly or implicitly (i.e., debt monetization producing significant inflation).

1) Switzerland

Switzerland is a country that, in practically all economic and social metrics, is an example to follow. With a population of almost 9 million people, Switzerland has no natural resources of its own, no access to the sea, and virtually no public debt.

Average U.S. household income in 2022: $105,555

The average U.S. household income in 2022 was $105,555, while the median U.S. household income was $74,580. Adjusting for inflation, median household income dropped 2.2% from 2021 to 2022.

A home is one of the most commonly owned assets, and home equity is the single largest contributor to household wealth. Thus, plummeting housing prices had a profound impact on the net worth of most households.

Like most other developed nations, the U.S. economy is largely based on services. Service-based industries, including professional and business services, real estate, finance, and health care, make up the bulk (70%) of U.S. GDP.

The federal government collects revenue from a variety of sources, including individual income taxes, payroll taxes, corporate income taxes, and excise taxes. It also collects revenue from services like admission to national parks and customs duties.