Who Gets It? Who Pays For It?
Two new “Fiscal Facts” from the Tax Foundation (#189, “Accounting for What Families Pay in Taxes and What They Receive in Government Spending,” #190, “Basic Facts on Redistribution and the Impact of Obama’s Policies.” and news release) point out that “most families earning up to $109,000 will get more back from government benefits" than they pay in taxes, specifically saying:
"Currently, most families earning up to roughly $86,000 receive more in federal spending than they pay in federal taxes," said Tax Foundation President Scott Hodge. "By 2012, if President Obama's proposals on taxes, health care and climate change become law, families earning up to $109,000 will, as a group, be receiving more in federal spending than they pay in federal tax."
“In 2012, Obama's policies will increase the average amount of income redistributed from the top 1 percent of families to more than a half-million dollars per family—$505,000, up from an average of $378,000 today. (emphasis added)
“Even if none of Obama's policies becomes law, the extent of current income redistribution is remarkable: The top-earning 40 percent of families will transfer $826 billion to the bottom 60 percent in 2012. If Obama's policies become law, the federal government will redistribute nearly $1 trillion from the top-earning 30 percent of families to the bottom 70 percent (those earning up to $109,000).
“In fiscal year 2010, the lowest-income families will receive $10.44 in federal spending for every dollar in taxes they pay. Middle-income families, who are the targeted beneficiaries of many Obama policies, will receive $1.15 in government spending benefits for every dollar they pay in taxes.” (emphasis added)
To see just how much federal spending families receive per dollar of taxes they pay, the following chart provides the picture, which comes from Fiscal Facts #189:
