The Distribution of Federal Spending and Taxes in 2006

Transcription

1 Congressional Budget Office December 3, 2013 The Distribution of Federal Spending and Taxes in 2006 Molly Dahl, Microeconomic Studies Division Kevin Perese, Tax Analysis Division

2 Overview Extends prior CBO distributional analyses by including spending

3 Overview Extends prior CBO distributional analyses by including spending Snapshot of a single year: calendar year 2006 Not a lifetime analysis

4 Overview Extends prior CBO distributional analyses by including spending Snapshot of a single year: calendar year 2006 Not a lifetime analysis Household types Elderly Nonelderly with children Nonelderly without children

5 Overview Extends prior CBO distributional analyses by including spending Snapshot of a single year: calendar year 2006 Not a lifetime analysis Household types Elderly Nonelderly with children Nonelderly without children Income groups among the nonelderly Market income quintiles

6 Federal Spending and Revenues, 2006 Federal Spending $2.7 Trillion Federal Revenues $2.4 Trillion

7 Allocated Federal Spending and Revenues, 2006 Analyzed the distribution of most federal spending (88 percent), and virtually all federal taxes (98 percent) in calendar year 2006 Federal Spending $2.3 Trillion Federal Revenues $2.4 Trillion

8 Categories of Federal Spending, 2006 Cash and Near-Cash $785 Billion Cash Social Security Refundable Tax Credits SSI UI TANF Means-Tested Veterans Benefits Black Lung Disability Near-cash SNAP Housing Assistance Pell Grants Child Nutrition Programs WIC LIHEAP

9 Categories of Federal Spending, 2006 Cash and Near-Cash Social Security Cash Social Security Refundable Tax Credits SSI UI TANF Means-Tested Veterans Benefits Black Lung Disability $785 Billion Near-cash SNAP Housing Assistance Pell Grants Child Nutrition Programs WIC LIHEAP

10 Categories of Federal Spending, 2006 Cash and Near-Cash Social Security $785 Billion Health Care $481 Billion Medicare Medicaid and CHIP Means-Tested Veterans Health Benefits

11 Categories of Federal Spending, 2006 Cash and Near-Cash Social Security $785 Billion Health Care Medicare $481 Billion Medicare Medicaid and CHIP Means-Tested Veterans Health Benefits

12 Categories of Federal Spending, 2006 Cash and Near-Cash Social Security $785 Billion Health Care Medicare $481 Billion Other Goods and Services National Defense Other HHS Education OPM Transportation Other Veterans Affairs Agriculture Justice Energy Other $1,080 Billion

13 Categories of Federal Spending, 2006 Cash and Near-Cash Social Security $785 Billion Health Care Medicare $481 Billion Other Goods and Services National Defense National Defense Other HHS Education OPM Transportation Other Veterans Affairs Agriculture Justice Energy Other $1,080 Billion

14 Categories of Federal Spending, 2006 Cash and Near-Cash Social Security $785 Billion Health Care Medicare $481 Billion Other Goods and Services National Defense $1,080 Billion Unallocated Spending Interest On Debt $312 Billion Interest on Debt Total Spending: $2.7 Trillion

15 Spending on Cash and Near-Cash, by Type of Household, 2006 (Billions of dollars) Other Social Security Elderly Nonelderly With Children Nonelderly Without Children

16 Spending on Health Care, by Type of Household, 2006 (Billions of dollars) Medicaid and Other 200 Medicare Elderly Nonelderly With Children Nonelderly Without Children

17 Federal Taxes, by Type of Household, 2006 (Billions of dollars) 1, Elderly Nonelderly With Children Nonelderly Without Children

18 Average, Taxes, and Minus Taxes, by Type of Household, 2006 (Dollars per household) 30,000 20,000 Taxes 10, ,000-20,000 Elderly Nonelderly with Children Nonelderly without Children

19 Average, Taxes, and Minus Taxes, by Type of Household, 2006 (Dollars per household) 30,000 20,000 Taxes 10, ,000 minus Taxes -20,000 Elderly Nonelderly with Children Nonelderly without Children

20 Federal Spending, 2006 Cash and Near-Cash $785 Billion Health Care $481 Billion Other Goods and Services $1,080 Billion Unallocated Spending $312 Billion Total Spending: $2.7 Trillion

21 Federal Spending on Other Goods and Services, by Type of Household, 2006 (Billions of dollars) Allocated by Share of Population 0 Elderly Nonelderly with Children Nonelderly without Children

22 Federal Spending on Other Goods and Services, by Type of Household, 2006 (Billions of dollars) Allocated by Share of Population Allocated by Share of Market Income 0 Elderly Nonelderly with Children Nonelderly without Children

23 Average Spending Minus Taxes, by Type of Household, 2006 (Dollars per household) 30,000 20,000 10,000 0 minus Taxes -10,000-20,000 Elderly Nonelderly with Children Nonelderly without Children

24 Average Spending Minus Taxes, by Type of Household, 2006 (Dollars per household) 30,000 20,000 plus Other G&S (by Share of Population) minus Taxes 10,000 plus Other G&S (by Share of Market Income) minus Taxes 0 minus Taxes -10,000-20,000 Elderly Nonelderly with Children Nonelderly without Children

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26 Federal Spending and Revenues, 2006 Federal Spending $2.7 Trillion Federal Revenues $2.4 Trillion

27 Spending and Revenues Allocated Federal Spending $2.7 Trillion Federal Revenues $2.4 Trillion

28 Spending and Revenues Allocated to Nonelderly Households Federal Spending $1.5 Trillion $2.7 Trillion Federal Revenues $2 Trillion $2.4 Trillion

29 Spending on Nonelderly Households $1.5 Trillion Cash and Near-Cash $375 Billion Health Care $175 Billion Other Goods and Services $920 Billion

30 Spending on Cash and Near-Cash for Nonelderly Households Cash and Near-Cash $375 Billion

31 Spending on Cash and Near-Cash for Nonelderly Households Cash and Near-Cash $375 Billion By Income Group Lowest

32 Spending on Cash and Near-Cash for Nonelderly Households, by Income Group and Transfer (Billions of dollars) 200 Near- Cash 100 Other Cash Social Security 0 Lowest

33 Spending on Cash and Near-Cash for Nonelderly Households, by Income Group and Transfer (Billions of dollars) 200 Near- Cash 100 Other Cash Social Security 0 Lowest Middle Highest

34 Spending on Health Care for Nonelderly Households Health Care $175 Billion

35 Spending on Health Care for Nonelderly Households Health Care $175 Billion By Income Group Lowest

36 Spending on Health Care for Nonelderly Households, by Income Group and Transfer (Billions of dollars) 100 Medicaid and Other Medicare 0 Lowest

37 Spending on Health Care for Nonelderly Households, by Income Group and Transfer (Billions of dollars) 100 Medicaid and Other Medicare 0 Lowest Middle Highest

38 Spending on for Nonelderly Households, by Income Group (Billions of dollars) Lowest Middle Highest

39 Taxes Paid by Nonelderly Households $2 Trillion Highest

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41 Average Market Income Plus Minus Taxes for Nonelderly Households (Dollars per household) 300, , , , ,000 50,000 0 Lowest Middle Highest

42 Average Market Income Plus Minus Taxes for Nonelderly Households (Dollars per household) 300, , , , ,000 50,000 0 Lowest Middle Highest

43 Average Market Income Plus Minus Taxes for Nonelderly Households (Dollars per household) 300, , , , ,000 50,000 0 Lowest Middle Highest

44 Average Market Income Plus Minus Taxes for Nonelderly Households (Dollars per household) 300, ,000 DOWN 27% 200, , ,000 50,000 UP 101% DOWN 14% 0 Lowest Middle Highest

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46 Federal Spending on Other Goods and Services for Nonelderly Households Other Goods and Services $920 Billion

47 Federal Spending on Other Goods and Services for Nonelderly Households Other Goods and Services $920 Billion Allocated by Share of Population Lowest Allocated by Share of Market Income

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49 Average Spending Minus Taxes for Nonelderly Households (Dollars per household) 25, ,000-50,000-75,000 minus Taxes Lowest Middle Highest

50 Average Spending Minus Taxes for Nonelderly Households (Dollars per household) 25, ,000-50,000-75,000 minus Taxes Lowest plus Other G&S (by Share of Population) minus Taxes Middle Highest

51 Average Spending Minus Taxes for Nonelderly Households (Dollars per household) 25, ,000-50,000-75,000 minus Taxes Lowest plus Other G&S (by Share of Market Income) minus Taxes plus Other G&S (by Share of Population) minus Taxes Middle Highest

52 Recap Extends prior CBO distributional analyses by including spending

53 Recap Extends prior CBO distributional analyses by including spending More spending on elderly households than taxes paid by those households in 2006; the opposite was true for nonelderly households

54 Recap Extends prior CBO distributional analyses by including spending More spending on elderly households than taxes paid by those households in 2006; the opposite was true for nonelderly households Among the nonelderly, more spending on lower income households than taxes paid by those households in 2006; the opposite was true for higher income households