Americans Get More Tax Revenue Then They Send
A milestone has been reached. One not seen since the Great Depression.
Households received $2.3 trillion in some kind of government support in 2010….that’s more than the $2.2 trillion households paid in taxes, an amount that has slumped largely due to the recession, according to an analysis by the Fiscal Times.
Also, an estimated 59% of the 308.7 million Americans in this country get at least one federal benefit, according to the Census Bureau, based on 2009 data. An estimated 46.5 million get Social Security; 42.6 million get Medicare; 42.4 million get Medicaid; 36.1 million get food stamps; 12.4 million get housing subsidies; and 3.2 million get Veterans’ benefits.
And the handouts from the government have been growing. Government cash handouts account for a whopping 79% of household growth since 2007, even as household tax payments–for things like the income and payroll tax, among other taxes–have fallen by $312 billion.
That is a tough feeding trough to take away from voters….In short, Americans have the government, not private enterprise, to thank for their wealth growth….does that mean those households are more inclined to re-elect politicians who are pushing for more government handouts?
Does the workforce erode because it is easier to collect a check than answer to an alarm clock each morning?
President Obama and Democrats have relied upon keeping the trough full to keep political power. It has proven effective time and again (David Cicilline, anyone?). Republicans aren’t blameless either (earmarks, pet projects and the like). The mindset isn’t new, but that it may be taking hold of a majority of Americans could be a dangerous tipping point.