Taxes More than half of Americans receive more money in various types of government transfer payments than they pay in federal taxes.
According to a report released this year by the Congressional Budget Office, only the top two income quintiles in the United States pay more in taxes than they receive in government transfers.
In the lowest quintile, households pay only $400 in taxes while receiving more than $16,000 in various types of tax-funded transfer payments.
As Ludwig von Mises once noted, once we get to the point that a majority of the voting population receives more in benefits than it pays in taxes, then voters will demand more and more wealth be transferred to them through government programs.
Over a lifetime, they're likely to receive more in benefits than what they "Paid in." This notion of "Paying in," however, is pure fiction, and there is no "Trust fund" for old-age benefits, and all benefits received at any given time are funded via taxation of current wage earners.
In the lowest quintile, market income is less than half of income after taxes and transfers.
Since many households at both the lowest end and near the middle receive more in benefits than they pay in taxes, we end up with a situation in which the voters think tax cuts don't benefit them much - but spending cuts definitely do hurt them.
https://www.zerohedge.com/news/2018-10-24/more-half-america-gets-more-welfare-it-pays-taxes
According to a report released this year by the Congressional Budget Office, only the top two income quintiles in the United States pay more in taxes than they receive in government transfers.
In the lowest quintile, households pay only $400 in taxes while receiving more than $16,000 in various types of tax-funded transfer payments.
As Ludwig von Mises once noted, once we get to the point that a majority of the voting population receives more in benefits than it pays in taxes, then voters will demand more and more wealth be transferred to them through government programs.
Over a lifetime, they're likely to receive more in benefits than what they "Paid in." This notion of "Paying in," however, is pure fiction, and there is no "Trust fund" for old-age benefits, and all benefits received at any given time are funded via taxation of current wage earners.
In the lowest quintile, market income is less than half of income after taxes and transfers.
Since many households at both the lowest end and near the middle receive more in benefits than they pay in taxes, we end up with a situation in which the voters think tax cuts don't benefit them much - but spending cuts definitely do hurt them.
https://www.zerohedge.com/news/2018-10-24/more-half-america-gets-more-welfare-it-pays-taxes
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