Stop whining — the “Rich” do pay their share, and everyone else’s too

Mark Perry analyzes the new CBO report on the Distribution of Household Income and Federal Taxes, 2011 showing that only Americans in the top 20% of household income are “net payers” of income taxes, meaning they pay more in taxes than they receive in benefits.  The bottom 60% pay less in taxes than they get back in government entitlements and subsidies. The 4th quintile pay only slightly more taxes than they get back. The top 20% in income are funding the entire government.

The CBO report has received a lot of attention and commentary. Perry adds some that hasn’t been discussed yet:

Some additional analysis and commentary will be provided here that reveal a yet-to-be discussed major implication of the CBO report – almost the entire burden: a) of all transfer payments made to American households and b) of all non-financed government spending, falls on just one group of Americans – the top one-fifth of US household by income. That’s correct, the CBO study shows that the bottom three income quintiles representing 60% of US households are “net recipients” (they receive more in transfer payments than they pay in federal taxes), the second-highest income quintile pays just slightly more in federal taxes ($14,800) than it receives in government transfer payments ($14,100), while the top 20% of American “net payer” households finance 100% of the transfer payments to the bottom 60%, as well as almost 100% of the tax revenue collected to run the federal government. Here are the details of that analysis.

Perry includes this stunning chart:

cboThe whiners should stop their bellyaching and start sending thank you cards to anyone they know  of who has income over $250,000 a year. These are the people who are pulling the wagon and everyone else is riding in it. OK, that’s they way it is, but those getting a free ride should have the decency to stop fussing about the “Rich.”

Read all of Mark Perry’s analysis.

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