How Much Money Does The Federal Government Have?

Todd Mardis: That’s a great question, and it is a question most people I don’t think really think through, they would say “whatever the annual budget is” right? That’s how much money the Federal Government has. Well, the Federal Government has no money, on a yearly basis they start off with zero. The amount of money that we have or the Federal Government has is based on how much money they take from us as citizens and business owners in the US.

Surely and simply put, the IRS maintains and gathers funds for the Federal Government to then reallocate in ways that legislators feel appropriate. But the bottom line is, they being the Federal Government, does not have money.

It is interesting to think about the money that the Federal Government is accessing on a yearly basis, it is coming from out clientele, it is coming from the business owners in America, who are out on a constant basis, earning money, and then paying taxes on that, Monthly, Quarterly, Annually. That’s where the revenue comes from that the Federal Government has to use to determine where to spend or allocate their resources.