Federal income tax: were does it go? Nixon Grace report says...?

Ive been curious about what our income tax is spent on and the only information I could find was the Grace report that was done when Nixon was president and was he was trying to find a way to balance the budget. It says, "With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government." This was written in 1984 and may not apply to today, so that is why I am asking the question, because this leads one to believe that our income tax isn't spent on any government services for the people. Any thoughts? And by-the-way, I am not a tax protestor, I pay every year, and believe everyone should do their part for America. Grace report can be found here: http://www.uhuh.com/taxstuff/gracecom.htm that's the only intellegent answer I get? no data?

Public Comments

1. uh...Nancy Grace as a source? C'mon. And 24 years old to boot?
2. As you have pointed out, the Grace commission report was done more than 20 years ago. Many things have changed since that time. First, income tax revenues were much lower at the time. Second, interest rate on the government debt was much higher. Third, notice the report said that some of the personal income taxes was WASTED or not collected. For a comparison of income tax revenues, you can look at http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=203 For interest on the debt, you can look at http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm for current data. For 1983 data, look at http://www.treasurydirect.gov/govt/reports/pd/mspd/pre1997/pre1997_1983.htm Looking at the U.S. budget is rather difficult. This is mainly because the budget is generalized and it is split into major categories of mandatory spending and discretionary spending. However, you can see some current data at http://www.cbo.gov/budget/approps.shtml and at http://www.cbo.gov/budget/data/budproj.shtml BTW, persons that may know an answer to your question may not always be online. You should probably wait more than an hour before assuming you aren't going to get an intelligent answer.