Americans spend more money on taxes than they do on food, clothing, and health care all together

Americans spent more money on expenses like food, clothing and health care in 2021 while the average tax bill fell by $400, compared to the previous year, as the cost of living rose under the Biden era.

The latest report from the Bureau of Labor Statistics found that in 2021, Americans spent about $16,700 in IRS taxes while paying more than $15,500 for food, clothing, and health care.

And even though people still spend more on taxes than the cost of living — the gap between the two is smaller than in 2020, with Americans spending $17,148 on taxes and $13,927 on other expenses. It’s also the smallest difference between the two costs since 2017.

On average in 2021, US consumer units spent $15,495 on food, clothing, and health care combined, less than $16,729 spent on taxes

On average in 2021, US consumer units spent $15,495 on food, clothing, and health care combined, less than $16,729 spent on taxes

The BLS recorded the costs of spending on the average “consumer unit,” a household or a financially independent individual. In 2021, the agency reported 133,495 consumer units in the United States.

On average in 2021, US consumer units spent $8,289.28 on food, $1,754.39 on clothing, and $5,451.61 on health care.

Meanwhile, federal, state, social security, property and other taxes totaled $1,6729.73, according to the BLS.

The disparity between the two expenditures was less than half of 2020, at about $3,200.

In 2019, the spread was around $3,500, and in 2018, it was nearly $4,000. It was nearly double the $2,200 difference recorded in 2017.

The BLS report comes as the agency found that average income per unit consumer in 2021 rose 3.7 percent to $87,432, while spending jumped 9.1 percent to $66,928.

The report concludes that the average American consumer has failed to keep pace with the rising cost of living affected by rampant inflation that remains consistently high.

He confirms President Joe Biden’s claims earlier this week that his “bold and decisive” actions over the past two years have led to “significant progress.”

The US has seen negative GDP returns over the past two quarters, indicating that the nation is already in a recession.

The US has seen negative GDP returns over the past two quarters, indicating that the nation is already in a recession.

A recent Gallup poll showed that the percentage of Americans who say inflation is causing them financial hardship rose from 49 percent in January to 56 percent, with price hikes forcing 69 million households to make cuts.

12% of the survey’s 1,570 worrying respondents said they were experiencing ‘extreme hardship’ that had reduced their standard of living – an increase from 9% who said so at the start of 2022.

Although gas prices fell to $3.78 a gallon and inflation eased to 8.5 percent in July, the economy and rising prices remain a major concern for millions of cash-strapped voters heading into the midterms in November.

“With high inflation continuing for more than a year, the majority of Americans now say they are cash-strapped due to higher prices,” the report said.

Low-income Americans were mainly affected early on, but most middle-income Americans and a significant minority of high-income Americans are now feeling the pressure of higher prices.

Many middle- and upper-income Americans are experiencing higher prices than they were last November

Many middle- and upper-income Americans are experiencing higher prices than they were last November

Participants in recent polls conducted by the KFF and The Wall Street Journal cited the economy and inflation as one of their priorities ahead of the midterm elections.

Participants in recent polls conducted by the KFF and The Wall Street Journal cited the economy and inflation as one of their priorities ahead of the midterm elections.

Poorer homeowners are more likely to experience severe hardship than others—26 percent of those with an annual income of less than $48,000 say the prices are seriously hurting their family.

This compares to 12 percent of middle-income Americans and 4 percent of the wealthy.

Reports of financial hardship also vary with party loyalty. Republicans (67 percent) are much more likely than Democrats (44 percent) to say inflation is hurting their families — an effect most likely for Democrats who control the White House and Congress.

In response to rising prices, cash-strapped people are cutting back on spending on travel, groceries, vacations, gas and restaurants, as well as buying cheap produce and even growing vegetables at home, according to Gallup.

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