Government Give More in Hand Outs than it Collects in Taxes from Households

Discussion in 'Politics' started by boedicca, Apr 20, 2011.

  1. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    This is quite simply our budget problem in a picture:

    [​IMG]

    Government transfers of income to households started to overtake personal taxes at the start of 2008, and the gap has been widening. In 2010, households received $2.3 trillion in income support from unemployment benefits, Social Security, disability insurance, Medicare, Medicaid, veterans’ benefits, education assistance and other cash transfers of government funds to individuals. Also last year, households paid $2.2 trillion in income, payroll, and other taxes. The difference was $125 billion, equivalent to 1 percentage point of overall personal income and about three times the amount Republicans and Democrats agreed to cut from government spending through Sept. 30.

    Budget Deficit: Government Handouts Top Tax Income


    We can't continue this out of control unlimited spending on entitlement programs. The major objective of the budget should be to reform these so they do not exceed reasonably tax receipt forecasts. The other side of the equation is the absolutely abysmal employment picture due to how this spending is crushing GDP growth. More jobs will lift receipts - but this won't happen until the spending is addressed.
     
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  2. Navy1960
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    Navy1960 Senior Member

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    While I agree that Govt. in general is in dire need of a litte house cleaning, I'd be interested in knowing how the unemployment figures run with that graph. The one line especially looks like a big drop off right around the time unemployment shot up. I don't have any data on this but it's just and observation. I for one am of the opinion that spending as a percentage of GDP is way way out of line. However, I also believe that the problem with our financial house is not a singular one, and if you just reduce spending without reforming the policy that created the ability to spend in the first place as well as create new sources of revenue then all your doing is fixing one leg of of a tri-pod that has three legs broken.
     
  3. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Certainly UI is a problem, but the trend lines were unfavorable before then.

    What is making this a permanent, structural issue is that Obama has baked the "one time" stimulus package into the budget baseline, and that money is largely spread around a bunch of transfer payment related programs. We need to roll spending back to 2007 or 2008 levels and then reform from there.
     
  4. Claudette
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    Claudette Gold Member

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    Good post Bo.

    O'Reilly touched on this last night.

    Apparantly for the first time since God knows when the takers outnumber the producers.

    Food for thought. Wonder if the Clowns in DC are aware or if they care??
     
    Last edited: Apr 20, 2011
  5. Cuyo
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    Cuyo Training a Guineapig army

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    Seems like the overtake coincided with a financial event of some magnitude. :rolleyes:
     
  6. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    They're aware - but a great many do not care.

    They are too engaged in the game of musical chairs to ensure they gather up enough taxpayer money for themselves before the system implodes.
     
  7. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    The "overtake" coincided with the Stimulus package, bub.
     
  8. DiamondDave
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    DiamondDave Army Vet

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    IMHO... the blue line should be a flat one... at the ZERO level
     
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  9. editec
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    editec Mr. Forgot-it-All

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    \


    Per usual I just want to remind you that Social security and veterans benefits are NOT handouts, not welfare and in no way charity.

    Social security is an insurance scheme wherein the workers ALREADY paid for their own insurance. Hence to call that welfare is nothing but right wing partisan CLASS WAR nonsense

    And veterans benefits are a contractual repayment for services ALREADY rendered. Hence, to call that welfare is also nothing but right wing partisan CLASS WAR nonsense, too.
     
    Last edited: Apr 20, 2011
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    And right on cue, the point goes over your pointy little head.

    TRANSFERS have to be paid for, even if they are for a good cause. We cannot continue to provide them by BORROWING MASSIVE AMOUNTS OF MONEY.

    SS is not insurance, by the way. It is a ponzi scheme welfare program in which current taxpayers pay the benefits for current recipients. There is no investment pool to make guarantee one's benefits. And the Supreme Court has ruled that Congress can change it at any time.
     

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