Of course this does not include state and local income taxes, property taxes nor benefit program fees such as Social Security and Medicare, nor does it included fees paid directly to the Federal government for “services”.
Additionally, depending on where you live, about 25% of the local “income” comes from government transfer payments. Transfer payments are money received from the government without a corresponding return of services at the time of payment.
A transfer payment is a one-way payment to a person or organization which has given or exchanged no goods or services for it. This contrasts with a simple “payment,” which in economics refers to a transfer of money in exchange for a product or service.
Generally, the phrase “transfer payment” is used to describe government payments to individuals through social programs such as welfare, student grants, and even Social Security.
