With all the talk around the One Big Beautiful Bill Act, understanding where our tax dollars go can help put the bigger economic picture into perspective—and this month's chart offers a breakdown of how the federal government allocates its spending. 

Many people make the mistake of thinking tax planning is something you do in December, scrambling to find deductions and last-minute strategies before year-end. But smart tax planning is a year-round effort that can lead to greater tax savings, better financial decisions, and fewer surprises when you file your return.

While we haven’t yet said goodbye to 2024, it’s not too early to begin thinking about any tax changes that may be on the horizon. The Tax Cuts and Jobs Act (TCJA) of 2017 was designed to overhaul the federal tax code by reforming individual and business taxes. As a result, sweeping tax changes lowered marginal tax rates and the cost of capital.