Sunday, February 19, 2006
The Myth of Spending Cuts for the Poor, Tax Cuts for the Rich
...More broadly, the accusation that poor families are shouldering more of the tax burden while receiving less of the spending is empirically false. From 1979 through 2003, the total federal tax burden on the highest-earning quintile (one-fifth or 20 percent) of Americans—who earn 52 percent of all income—rose from 56 percent to 66 percent of all taxes. Their share of individual income taxes jumped from 65 percent to 85 percent.[2] On the spending side, antipoverty spending has leaped from 9.1 percent of all federal spending in 1990 to a record 16.3 percent in 2004.[3]...
...[3]Total antipoverty spending is calculated based on data from Office of Management and Budget, Historical Tables, Budget of the United States Government, Fiscal Year 2007 (Washington, D.C.: U.S. Government Printing Office, 2006), pp. 55–72, Table 3.2, and pp. 137–142, Table 8.5, at http://www.whitehouse.gov/omb/budget/fy2007/pdf/hist.pdf (February 4, 2006). The spending consists of budget functions 604 (housing aid), 605 (food aid), 609 (other income support), and Medicaid and S-CHIP for health care....