Washington Recommended Spending Percentages

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What percentage of your income should you spend on what items? This form has some recommendations to consider. The important thing is to come up with realistic percentages.

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FAQ

As Figure A suggests, Social Security is the single largest mandatory spending item, taking up 38% or nearly $1,050 billion of the $2,736 billion total. The next largest expenditures are Medicare and Income Security, with the remaining amount going to Medicaid, Veterans Benefits, and other programs.

State and local governments spend most of their resources on education, health, and social service programs. In 2019, about one-third of state and local spending went toward combined elementary and secondary education (22 percent) and higher education (9 percent).

Washington is one of a few states without personal or corporate income taxes. Washington depends more heavily on excise taxes, including the general sales & use tax, selective sales taxes, and the gross receipts tax (business & occupation tax) than most any other state.

All state sales and use tax revenues are deposited in the state general fund, except the additional sales tax on car rentals and the additional tax on motor vehicle sales, which are deposited in the multimodal transportation account.

Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation. State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.

In 2019, 43 percent of states' direct general expenditures went toward public welfare, the largest direct expenditure as a share of state spending.

Most of local government spending is on services like water, electricity, sewage, waste removal, roads and facilities.

In Washington, total healthcare spending amounted to $45.2 billion, 13.6 percent of gross state product (GSP), the lowest percentage among neighboring states. Total healthcare spending came out to about $6,782 per person.

Mandatory Spending This category includes entitlement programs such as Social Security, Medicare, and unemployment compensation. It also includes welfare programs such as Medicaid. Social Security will be the biggest expense, budgeted at $1.196 trillion.

This category includes entitlement programs such as Social Security, Medicare, and unemployment compensation. It also includes welfare programs such as Medicaid. Social Security will be the biggest expense, budgeted at $1.196 trillion. It's followed by Medicare at $766 billion and Medicaid at $571 billion.

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Washington Recommended Spending Percentages