Friday, October 7, 2011

Tax Policy and the American Economy 2011

Nearly half of all American households, or 48.5% of the population, is receiving some type of government benefit, according to a new U.S. Census Bureau report.  The figure reflects the amounts of assistance U.S. families were receiving last year, and it's the highest percentage ever. 

This is coupled with another alarming statistic (which I have written about often):  The Tax Policy Center (an independent organization that monitors tax policy) has reported that 46.4% of households will pay no federal income tax this year.

Still, most of those households will be liable for payroll taxes; just 18.1% of households pay neither payroll nor federal income taxes, the Tax Policy Center said, as they comprise the nation's most needy and poorest households.

So there you have it in 2011, almost half of American citizens receive some form of government benefit and almost half pay no income taxes, most assuredly many of the same individuals populate both groups. 

This is not a conservative or liberal issue; this is a question about free and effective democracy.  You cannot have a properly functioning and engaged citizenry when this is the economic reality for almost half of the country.   

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