Middle Class Now Receives More in Government Benefits Than They Pay in Taxes

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    Jul 18, 2012 12:49 AM GMT
    http://taxprof.typepad.com/taxprof_blog/2012/07/mankiw-middle-class.html

    Because transfer payments are, in effect, the opposite of taxes, it makes sense to look not just at taxes paid, but at taxes paid minus transfers received. For 2009, the most recent year available, here are taxes less transfers as a percentage of market income (income that households earned from their work and savings):

    Bottom quintile: -301%
    Second quintile: -42%
    Middle quintile: -5%
    Fourth quintile: 10%
    Highest quintile: 22%

    Top one percent: 28%

    The negative 301% means that a typical family in the bottom quintile receives about $3 in transfer payments for every dollar earned.

    The most surprising fact to me was that the effective tax rate is negative for the middle quintile. According to the CBO data, this number was +14 percent in 1979 (when the data begin) and remained positive through 2007. It was negative 0.5 percent in 2008, and negative 5% in 2009. That is, the middle class, having long been a net contributor to the funding of government, is now a net recipient of government largess.
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    Jul 18, 2012 12:54 AM GMT
    riddler78 saidhttp://taxprof.typepad.com/taxprof_blog/2012/07/mankiw-middle-class.html

    Because transfer payments are, in effect, the opposite of taxes, it makes sense to look not just at taxes paid, but at taxes paid minus transfers received. For 2009, the most recent year available, here are taxes less transfers as a percentage of market income (income that households earned from their work and savings):

    Bottom quintile: -301%
    Second quintile: -42%
    Middle quintile: -5%
    Fourth quintile: 10%
    Highest quintile: 22%

    Top one percent: 28%

    The negative 301% means that a typical family in the bottom quintile receives about $3 in transfer payments for every dollar earned.

    The most surprising fact to me was that the effective tax rate is negative for the middle quintile. According to the CBO data, this number was +14 percent in 1979 (when the data begin) and remained positive through 2007. It was negative 0.5 percent in 2008, and negative 5% in 2009. That is, the middle class, having long been a net contributor to the funding of government, is now a net recipient of government largess.
    When the economy and their jobs tanked! DUH!!!!!!!!!!!!!!!
  • Webster666

    Posts: 9217

    Jul 18, 2012 1:48 AM GMT
    This is an easy one.

    There is no "middle class" left.

    We gots the filthy rich.

    We gots the pitiful poor.
  • jock_1

    Posts: 1491

    Jul 18, 2012 4:20 AM GMT
    All in the Obama agenda. The more you make people dependent on gov't the more power the gov't has to control your life. Its a simple concept alot of democrats can't seem to understand. It is even clear in the speeches he now gives. Its scary to think this is how our president thinks of his country and people when he tries to divide instead of his pledge to unite.

    Just stop and really listen to what he says! Dont listen to any media on news coverage. Just listen to what the man says.
  • KissTheSky

    Posts: 1980

    Jul 18, 2012 6:31 AM GMT
    Oops -- you forgot to mention that the people receiving the most government benefits are living in RED STATES. You know, the ones who like to complain about all the government hand-outs that Socialist Obama is giving to the undeserving people who don't look like real Americans? What a surprise, it turns out the Red-Staters are living on the Federal dole.
    They're against "government hand-outs" -- but keep those checks coming, Uncle Sam! icon_rolleyes.gificon_rolleyes.gif

    http://www.addictinginfo.org/2012/03/11/red-states-are-the-real-welfare-states/
  • Posted by a hidden member.
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    Jul 18, 2012 6:44 AM GMT
    riddler78 saidMiddle Class Now Receives More in Government Benefits Than They Pay in Taxes
    Then why the fuck am I paying $8K+/year in taxes on a $70K/year salary? icon_question.gif
  • Webster666

    Posts: 9217

    Jul 19, 2012 12:18 AM GMT
    jock_1 saidAll in the Obama agenda. The more you make people dependent on gov't the more power the gov't has to control your life. Its a simple concept alot of democrats can't seem to understand. It is even clear in the speeches he now gives. Its scary to think this is how our president thinks of his country and people when he tries to divide instead of his pledge to unite.

    Just stop and really listen to what he says! Dont listen to any media on news coverage. Just listen to what the man says.




    Exactly how has President Obama made people more dependent on the government ?

    And, how does that alleged dependency cause the government to have more control over those people's lives ?
  • HottJoe

    Posts: 21366

    Jul 19, 2012 12:30 AM GMT
    Apparently republicans want to take food stamps from poor people and they're willing to vote for an enemy of gay rights to accomplish this.
  • jock_1

    Posts: 1491

    Jul 19, 2012 12:35 AM GMT
    HottJoe saidApparently republicans want to take food stamps from poor people and they're willing to vote for an enemy of gay rights to accomplish this.


    We can't do that, then he would'nt have his legacy of being "The Food Stamp President"
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    Jul 19, 2012 12:39 AM GMT
    HottJoe saidApparently republicans want to take food stamps from poor people and they're willing to vote for an enemy of gay rights to accomplish this.




    Added to what you stated, those cuts Republicans are proposing under the Ryan FIASCO he calls a budget, makes those cuts to be able to afford to maintain or add to the Military / Pentagon Budget, because the assholes would rather spend to send the poor masses kids to fight another g-damn war, this time with Iran, they didn't learn a damn thing from the failure of Iraq.
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    Jul 19, 2012 12:44 AM GMT
    Even the moderate Republicans are at war over what the extremists are doing...

    http://www.realjock.com/gayforums/2537451
  • HottJoe

    Posts: 21366

    Jul 19, 2012 12:48 AM GMT
    jock_1 said
    HottJoe saidApparently republicans want to take food stamps from poor people and they're willing to vote for an enemy of gay rights to accomplish this.


    We can't do that, then he would'nt have his legacy of being "The Food Stamp President"


    It's not Obama's fault people need food assistance. Only an elitist would show no sympathy for the poor.