1) The study assessed the tax burden and government spending received by US households in 2005 to measure the degree of "fiscal redistribution" in the US system.
2) In 2005, Americans paid $2.3 trillion in total taxes, with two-thirds going to the federal government and one-third to state and local governments. Americans received $2.1 trillion in government spending on services.
3) The amount of taxes paid was not proportional to the amount of government spending received. Households in the highest income quintile received $0.56 for every $1 of taxes paid, while households in the lowest quintile received $1.04 for every $1 of taxes paid, indicating redistribution
1) The study assessed the tax burden and government spending received by US households in 2005 to measure the degree of "fiscal redistribution" in the US system.
2) In 2005, Americans paid $2.3 trillion in total taxes, with two-thirds going to the federal government and one-third to state and local governments. Americans received $2.1 trillion in government spending on services.
3) The amount of taxes paid was not proportional to the amount of government spending received. Households in the highest income quintile received $0.56 for every $1 of taxes paid, while households in the lowest quintile received $1.04 for every $1 of taxes paid, indicating redistribution
1) The study assessed the tax burden and government spending received by US households in 2005 to measure the degree of "fiscal redistribution" in the US system.
2) In 2005, Americans paid $2.3 trillion in total taxes, with two-thirds going to the federal government and one-third to state and local governments. Americans received $2.1 trillion in government spending on services.
3) The amount of taxes paid was not proportional to the amount of government spending received. Households in the highest income quintile received $0.56 for every $1 of taxes paid, while households in the lowest quintile received $1.04 for every $1 of taxes paid, indicating redistribution
02/15/2010 Title: Special Report: Who Pays Americas Tax Burden, and Who Gets the Most Government Spendin! Authors: "ham#erlain, Andre$% Prante, Gerald% &ode, Scott A' Objective: Assess Americans tax #urden(amount o) taxes paid to )ederal, state, and local overnments(relative to the amount o) overnment spendin received()or such services as health care, education, crime en)orcement, etc'(in order to aue the extent o) *)iscal redistri#ution+ in ,'S' tax and spendin policy' "onsiderin the deree o) *)iscal redistri#ution+ in the ,'S' and the resultin e))ect on di))erent income roups may provide an alternative perspective on the tradeo)) #et$een e))iciency and e-uity produced #y tax and spendin re)orms' Data Sources: Bureau o) .conomic Analysis, ,'S' "ensus Bureau, ,'S' Bureau o) /a#or Statistics, 0))ice o) Manaement and Budet, "enters )or Medicare and Medicaid Services, Tax 1oundation Study Design: 2escriptive statistics calculated to descri#e the distri#ution o) taxes paid and overnment spendin received #y -uintiles o) ,'S' households in "3 4556, $ith -uintiles ranin )rom households $ith the lo$est 45 percent o) earned cash money income to households $ith the hihest 45 percent o) earned cash money income )or that year' Principal Findings: 7n 4556, Americans paid a total o) 89 trillion in taxes, $ith rouhly t$o: thirds paid to the )ederal overnment ;an averae o) 8<=,99> per household? and the remainin paid to state and local overnments ;an averae o) 8@,655 per household?' 1rom the )ederal, state, and local overnments, Americans received approximately 89'A trillion ;an averae o) 89<,<5> per household? in spendin on various services such as those listed a#ove' The amount o) taxes paid per household to all levels o) overnment $as not proportional to the amount o) overnment spendin received per household' The hihest earnin households received 85'6< per dollar o) taxes paid $hile the lo$est earnin households received 8>'4< per dollar o) taxes paid' Results are similar $hen spendin on pu#lic oods, such as national de)ense and environmental protection, are excluded )rom spendin totals(overnment spendin received #y all households decreases, #ut the lo$est earnin households continue to receive more spendin per dollar paid in taxes than hiher earnin households' Conclusions: Government taxin and spendin in 4556 redistri#uted approximately 8< trillion to 8<'A trillion #et$een American households' Given this redistri#ution o) income, #oth taxes and spendin should #e considered $hen examinin ho$ di))erent policies a))ect di))erent roups o) Americans' Key Concepts: )iscal )ederalism, pu#lic oods, income tax, income redistri#ution