20070326 “Tax Cuts for the poor” by Don Surber

Tax cuts for the poor

http://blogs.dailymail.com/donsurber/2007/03/26/tax-cuts-for-the-poor/

March 26th, 2007 by donsurber

The Tax Foundation has an interesting study that should end all debate on Bush’s tax cuts. I’ll cut to the chase:

Overall, we find that America’s lowest-earning one-fifth of households received roughly $8.21 in government spending for each dollar of taxes paid in 2004. Households with middle-incomes received $1.30 per tax dollar, and America’s highest-earning households received $0.41.

Government spending targeted at the lowest-earning 60 percent of U.S. households is larger than what they paid in federal, state and local taxes. In 2004, between $1.03 trillion and $1.53 trillion was redistributed downward from the two highest income quintiles to the three lowest income quintiles through government taxes and spending policy.

Now for those who may have been educated in DC schools (which spend more per student than any of the 50 states) $8.21 is more than 41 cents.

And $1.5 trillion is a lot of money to be transfered from 120 million people (40%) to 180 million.

That works out to every person in the top two quintiles (40%) shelling out $12,500 to be distributed to the rest — who pocketed on average $8,333 in free government goods and services.

While this is at all levels of government it should be noted that 59% of the federal budget is now tied up in entitlements.

Read the entire post here: Tax cuts for the poor