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Published byDarleen Poole Modified over 8 years ago
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INCOME REDISTRIBUTION PROBABLY MOST CONTROVERSIAL OF GOVERNMENT FUNCTIONS TRANSFERRING INCOME AND RESOURCES FROM SOME HOUSEHOLDS TO OTHER HOUSEHOLDS INVOLVES MANY PROGRAMS – TOTALLING OVER $1.5 TRILLION ANNUALLY
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THE DEBATE SUPPORTERS: SAY POVERTY IS STILL SIGNIFICANT, AT BETWEEN 15% AND 20% ALSO SAY INCOME INEQUALITY HAS INCREASED DETRACTORS SAY PROGRAMS REDUCE “SELF SUFFICIENCY” AND FINANCIAL INDEPENDENCE
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MEAN INCOME TRENDS OF U.S. HOUSEHOLDS DIVIDED INTO “FIFTHS” BY INCOME (2009 $)
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FAMILY NET WORTH BY PERCENTILE OF INCOME 2007 $000’S
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Percentage of Households in Income Ranges, 2009 $
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RATIO OF MEDIAN BACHELOR’S DEGREE ANNUAL SALARY TO MEDIAN HIGH SCHOOL DEGREE ANNUAL SALARY
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HOW MEASURE POVERTY? ABSOLUTE POVERTY RELATIVE POVERTY INCOME VERSUS CONSUMPTION
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HOW INCOME IS REDISTRIBUTED CASH TANF: TEMPORARY AID TO NEEDY FAMILIES EITC: EARNED INCOME TAX CREDIT NON-CASH (“IN-KIND”) FOOD STAMPS, NUTRITION PROGRAMS, MEDICAID IS ISSUE LACK OF MONEY, OR SOMETHING ELSE?
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ISSUES WITH INCOME REDISTRIBUTION 1. PHASING OUT HELP AS INCOME RISES – EFFECTIVE “MARGINAL TAX RATES” CAN BE HIGH 2.TAXES ON THOSE PROVIDING HELP: DISINCENTIVES TO WORK? 3.DOES GOVERNMENT ASSISTANCE “CROWD OUT” PRIVATE CHARITIES?
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