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President Obama’s Budget will Spread More Wealth Around
Posted By Curtis Dubay On June 25, 2009 @ 3:10 pm In Ongoing Priorities | Comments Disabled
Everyone remembers President Obama’s now-infamous comment as a candidate that he thinks everyone is better when we “spread the wealth around.” Of course, we spread plenty of wealth around through the tax code before Obama became President. In 2006, the latest year of available data, the top 20 percent of earners paid over 86 percent of all income taxes.  While the bottom 50 percent of earners paid almost no taxes whatsoever. 
To get a complete picture of government redistribution, however, we need to know who receives the spending in addition to who pays the taxes.
The Tax Foundation released a new paper today, “How Much Does President Obama’s Budget Redistribute Income?”  It puts both sides of the equation together and analyzes how much President Obama’s budget will increase redistribution.
The key findings include:
This additional redistribution comes on the heels of the stimulus that already increased redistribution through refundable credits , including the Making Work Pay Credit. 
Redistributing income hurts economic growth because it reduces the incentives for high-earners to work more and take on new economic risk. It discourages low-earners from doing the same, because they can maintain an acceptable standard of living without working more. Instead of pursuing these redistributionist policies, the President should pursue pro-growth policies that encourage Americans of all income levels to work more and generate new economic growth.
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2009/06/25/president-obama%e2%80%99s-budget-will-spread-more-wealth-around/
URLs in this post:
 the top 20 percent of earners paid over 86 percent of all income taxes.: http://www.heritage.org/Research/Taxes/wm2420.cfm
 bottom 50 percent of earners paid almost no taxes whatsoever. : http://www.heritage.org/Research/Taxes/sr0029.cfm
 “How Much Does President Obama’s Budget Redistribute Income?”: http://www.taxfoundation.org/files/sr168.pdf
 stimulus that already increased redistribution through refundable credits: http://www.heritage.org/Research/Economy/wm2354.cfm
 Making Work Pay Credit.: http://www.heritage.org/Research/Taxes/wm2240.cfm
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