Did you know that you can just write a check to donate to the federal government? According to the Bureau of the Fiscal Service, “Citizens who wish to make a general donation to the U.S. government may send contributions to a specific account called ‘Gifts to the United States.'” Why would someone want to give a financial gift to the US government? Personally I can’t think of a reason.
This account was established in 1843 to accept gifts, such as bequests, from individuals wishing to express their patriotism to the United States. Money deposited into this account is for general use by the federal government and can be available for budget needs. Considering the US national debt just crossed $30 Trillion (yes that’s trillion with a “T”), maybe they need more of our money.
The US government spent about $7 trillion last year and as you can see below: almost 2/3 of the budget (62.3%) was spent on social programs, 11% was spent on the military, and 6% was spent just on paying interest for our debt. Considering the government collected about $4 trillion in revenue in 2021, that leaves them about $3 trillion short. Maybe the US government should discover FIRE.
If you’d like to help our government out you can make a contribution to the Treasury. These contributions are considered an unconditional gift to the government. Citizens can make financial donations through a paper form or electronically through pay.gov. They accept:
- Bank account (ACH)
- Amazon account
- PayPal account
- Debit or credit card
The money donated here goes into the Treasury’s general fund. This is different than money collected by the IRS, but the difference is mostly symbolic, because the donations are fungible. Congress just has to vote how to use the Treasury’s general fund as it does with all of the federal government’s budget.
Congressmen Can Donate As Well
According to the Washington Post there is also a special program that allows members of the House of Representatives to dedicate a portion of their salaries towards reducing the debt. I believe this program goes towards the same US Treasury gift fund. The Post reports that in 2010 only three house members (two republicans and a democrat) donated a total of $15,233.56. This represents just 0.02% of the total salary of the House of Representatives.
Considering the amount of politicians in Congress who support raising taxes on the rich, there are surprisingly few who step forward to put their money where their mouth is and donate money to the federal government. And no one could argue that these politicians aren’t rich. Congressmen make a salary of $174,000. They are the very targets of their own rhetoric, and yet very few are interested in actually paying the government more.
Seeing as much of the wealthy elite (and most of Hollywood) go through all the effort to campaign for democrat politicians, I propose an alternative. Maybe raising taxes on the rich is the right decision, but politics is slow and burdensome and campaigns are expensive. You could bypass all that and just donate money to the government instead. The wealthy elites that are interested in raising taxes should put their money where their mouth is.
According to TreasuryDirect.gov citizens donate about $2 million/year to the US Treasury. If every democrat donated just $1000, it would could increase that amount by 75,000 fold. For everyone who wants to raise taxes, I propose a good faith donation to the government. It would go a long way towards making your political position seem generous rather than greedy.
Private Charity
Warren Buffet is a vocal proponent of raising taxes on the rich, yet Warren Buffet doesn’t donate to the federal government. He seems to be a bit of a hypocrite. That doesn’t mean he’s not charitable of course. He donates more to charity than possibly any other American, and has vowed to give all of his fortune away once he dies.
So why doesn’t he donate to the federal government? I believe it’s because he doesn’t think the government is an efficient means of helping people. He may say that he wants higher taxes, but like most of congress, his actions betray his belief that his money is best spent elsewhere. Warren Buffet believes he can do a better job of helping those who need it most than the government can.
Warren Buffet believes he can do a better job of helping those who need it most than the government can.
And so do the majority of Americans. That’s why private charities exist. Instead of paying some bureaucrat in Washington to decide how to help the needy (with whatever is left over after his fat paycheck and kickback program) I can just pay the needy directly. There are thousands of charities that do a lot of good and that don’t vote to give themselves raises every year.
For example sharethemeal.org says for $0.80 you can feed a child for a day. feedthechildren.org says for $34/month you can provide food, water, and education to third world countries. onetreeplanted.org will plant a tree for $1. Not to mention all the good you could do in your own family or community. This is why you shouldn’t retire early.
Conclusion
Should we raise taxes on the rich? I dunno, I’d rather stay away from political discussion. But if you do support raising taxes, I suggest that you be willing to lead by example and make a charitable donation to the US government. If you actually believe that they’ll use it well. And if you find you don’t believe that would be a good use of your money, then consider voting for lower taxes and use your tax cut to help those in need directly. I believe it’s more effective and makes you feel better.
This post, while true, was definitely written tongue in cheek. You can donate to the federal government. They will accept your money and put it to “good use”. But they won’t put it to great use. On the other hand you can put it to great use. Volunteer at a charity in your community, give money to those in need. And if you don’t know what a good use of your money is, sites like GiveWell.org do a lot of research and vetting of charities so you don’t have to feel overwhelmed.
What do you think? Should we raise taxes on the rich? Does the government use your taxes efficiently, or would charitable organizations be a better way to do good? Let us know in the comments below!