Where Do Our Federal Tax Dollars Go?

Chart of the Week for April 15-21, 2005

Oliver Wendall Holmes, former Justice of the U.S. Supreme Court, once said that taxes are what we pay for civilized society. With only a few hours remaining before the federal tax deadline, we thought it would be informative to remind everyone where our federal tax dollars are actually being spent. The chart above illustrates the estimated allocation of federal tax revenue among the general categories of expenditures. For 2004, estimated federal outlays were $2.2 trillion. While this amount is hard to fathom, so too is the allocation of federal tax dollars to retirees via Social Security. For the last fiscal year, 24% of our federal tax dollars were spent on Social Security, and Social Security encompassed more of our federal revenues than any major category of expenditure. These figures clearly demonstrate the importance of retirement to our elected officials and the populace as a whole. At ICMA-RC, we also view the retirement services offered to our participants and retirees with the same level of importance. We encourage everyone at this time to review their personal financial condition and take advantage of their retirement plan as a means for meeting their long-term financial goals.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

Please read both the current applicable prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights, investment objectives, risks and performance information. Investing in mutual funds and other investment vehicles involves risk, including possible loss of the amount invested. Investors should carefully consider the Fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information about the investment company. All Vantagepoint Funds invested through 401 or 457 plans are held through VantageTrust. The Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. For a current prospectus, contact ICMA-RC Services, LLC.

The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.