And So I Go: Yesterday, Today and Tomorrow

Government Cash Handouts Now Top Tax Revenues –

Posted on: May 12, 2011

Government Cash Handouts Now Top Tax Revenues –

Americans are now a people on the dole! and this will be the death of us.  BB

Government Cash Handouts Now Top Tax Revenues

By Elizabeth MacDonald

Published April 20, 2011

| FOXBusiness

U.S. households are now getting more in cash handouts from the government than they are paying in taxes for the first time since the Great Depression.

Households received $2.3 trillion in some kind of government support in 2010. That includes expanded unemployment benefits, as well as payments for Social Security, Medicare, Medicaid, and stimulus spending, among other things.

But 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.

For instance, Hennessey asks, if indeed more households have the government to thank for their wealth, does that mean those households are more inclined to re-elect politicians who are pushing for more government handouts?


President Obama had asked for the debt commission to “address the long-term quandary of a government that continually and extravagantly spends more than it takes in,” only to initially set aside  the commission’s recommendations. (What he should have done was to accept ENTIRELY the Debt Commission’s suggestions and pushed for it.  It would have brought the jobs and economy back full force while putting our country on a path to recovery and prosperity and given him the place in history he seems to want.  Of course it would also have been totally against his personal goal of destroying America. 
Since Obama did not use the Debt Commission program the House Republicans should have run with it!  The damned fools had the Republican sweep of the government in 2012 all laid out for them even if Harry Reid wouldn’t allow it thru the Senate.  Instead the Old Dog Republicans in the House are fumbling around with half measures that will do much less than is necessary and making themselves look inept to the public.  Perot was ahead of his time and could win in a landslide in 2012! BB)

And earlier this year the White House first introduced a budget that would have added $6.7 trillion more in deficit spending over the next 10 years, yanking the national debt higher to more than 75% of gross domestic product, according to the Congressional Budget Office. That, until GOP Rep. Paul Ryan offered his $4.4 trillion in spending cuts over ten years, causing the President to offer $4 trillion in cuts over 12 years.

The Fiscal Times reports that “the only other time government income support exceeded taxes paid was from 1931 to 1936.” The Times notes that “government transfers of income to households started to overtake personal taxes at the start of 2008, and the gap has been widening.”

The difference between what households received and what they paid in taxes is about $125 billion, equal to a little more than “three times the amount Republicans and Democrats agreed to cut from government spending through Sept. 30,” the Fiscal Times said. Typically, the gap between government transfers and taxes runs the other way, the Times reports.

“In normal times the household sector gives about eight percentage points more of its income in taxes than it receives in direct transfers,” the Times quotes J.P. Morgan economist Michael Feroli as saying, adding that a return to normalcy, or this eight-percentage-point spread, is equal to about $1.2 trillion in income.

So the question is: What government policies will bring the U.S. labor market back to robust health, enough to drive economic growth, consumer spending — and higher tax revenues?

When will the U.S. government pull back from its intervention into the U.S. economy, so the economy can try to stand on its own?  (Will this happen in time to save our nation?  I don’t know because it is mighty hard to take away once given, but it  is  almost impossible to explain to the elderly who make up the bulk of voters that their Social security and Medicare will not be taken from them.  I am one of the elderly and it amazes me how extremely stupid  this group of people are!  No matter how many times they are told that only those UNDER AGE 55 will see changes to their Medicare and Social Security this group of already on the dole senior citizens continue to mob town halls and yell, “Don’t touch my Social Security and Medicare!”  So between the stupid Senior citizens who are the voters and the gutless Congressmen who only want to be re-elected  I don’t have much hope.  Sincerely BB)

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