26 USC 7523 – Graphic presentation of major categories of Federal outlays and income
(a) General rule
In the case of any booklet of instructions for Form 1040, 1040A, or 1040EZ prepared by the Secretary for filing individual income tax returns for taxable years beginning in any calendar year, the Secretary shall include in a prominent place—
(1) a pie-shaped graph showing the relative sizes of the major outlay categories, and
(2) a pie-shaped graph showing the relative sizes of the major income categories.
(b) Definitions and special rules
Terms Used In 26 USC 7523
- foreign: when applied to a corporation or partnership means a corporation or partnership which is not domestic. See 26 USC 7701
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See 1 USC 8
- Outlays: Outlays are payments made (generally through the issuance of checks or disbursement of cash) to liquidate obligations. Outlays during a fiscal year may be for payment of obligations incurred in prior years or in the same year.
- Secretary: means the Secretary of the Treasury or his delegate. See 26 USC 7701
- State: shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title. See 26 USC 7701
For purposes of subsection (a)—
(1) Major outlay categories
The term “major outlay categories” means the following:
(A) Defense, veterans, and foreign affairs.
(B) Social security, medicare, and other retirement.
(C) Physical, human, and community development.
(D) Social programs.
(E) Law enforcement and general government.
(F) Interest on the debt.
(2) Major income categories
The term “major income categories” means the following:
(A) Social security, medicare, and unemployment and other retirement taxes.
(B) Personal income taxes.
(C) Corporate income taxes.
(D) Borrowing to cover the deficit.
(E) Excise, customs, estate, gift, and miscellaneous taxes.
(3) Required footnotes
The pie-shaped graph showing the major outlay categories shall include the following footnotes:
(A) A footnote to the category referred to in paragraph (1)(A) showing the percentage of the total outlays which is for defense, the percentage of total outlays which is for veterans, and the percentage of total outlays which is for foreign affairs.
(B) A footnote to the category referred to in paragraph (1)(C) showing that such category consists of agriculture, natural resources, environment, transportation, education, job training, economic development, space, energy, and general science.
(C) A footnote to the category referred to in paragraph (1)(D) showing the percentage of the total outlays which is for medicaid, supplemental nutrition assistance program benefits, and assistance under a State program funded under part A of title IV of the Social Security Act and the percentage of total outlays which is for public health, unemployment, assisted housing, and social services.
(4) Data on which graphs are based
The graphs required under subsection (a) shall be based on data for the most recent fiscal year for which complete data is available as of the completion of the preparation of the instructions by the Secretary.