Nearly Half of All Americans Don’t Pay Income Taxesthf_media.s3.amazonaws.com/2011/pdf/2011Indexof... · Nearly Half of All Americans Don’t Pay Income Taxes Note: Figures for

1962 1970 1980 1990 2000 2009

0%

10%

20%

30%

40%

50%

heritage.orgChart 1 • ArticleName

Nearly Half of All AmericansDon’t Pay Income Taxes

Note: Figures for 1977 to 1982 were extrapolated due to unavailable data.

Source: Heritage Foundation calculations based on data from the Internal Revenue Service, “Individual Income Tax Returns,” Publication 1304, 1962–2009, Table 1.4, and various IRS reports.

Percentage of U.S. Population Not Represented on a Taxable Return

23.7%

12%

34.1%

49.5%

1962 1970 1980 1990 2000 2010

0%

10%

20%

30%

40%

50%

60%

70%

80%


More than 70 Percent of Federal Spending Goes to Dependence Programs

Sources: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 1.1, pp. 22 and 23, and Heritage Foundation calculations sourced throughout the Index of Dependence on Government.

Share of Total Federal Spending

2003: 68.3%

70.5%

1990:48.5%

1962:28.3%

2003: 68.3%

70.5%

1990:48.5%

1962:28.3%

1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

$0

$10

$20

$30

$40

$50

$60


Housing Assistance Breaks Record Second Year in a Row

Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57, and Table 12.3, p. 276.

Expenditures in Billions of 2005 Dollars

273% increasefrom 1975 to 1981



Year-to-Year ChangeIncrease Decrease

$59.4

$52.3

1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

$0

$100

$200

$300

$400

$500

1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

$0

$100

$200

$300


Medicare and Medicaid Costs Rapidly Increasing

MEDICARE

MEDICAID

Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57, and Table 12.3 p. 266.







$452

$273

$251

$430

1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

$0

$200

$400

$600

$800

$1,000

$1,200


Welfare and Low-Income Health Care Assistance Surges

Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57, and Table 12.3, pp. 265, 266, 271, and 299.




41% increase from 2008 to 2010

$1,137$994

87% increasefrom 1990 to

1996

87% increasefrom 1990 to

1996

1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010$0

$200

$400

$600

$800

$1,000

$1,200


First of 78 Million Baby Boomers Retiring

Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57.


$1,023

$1,053Year-to-Year ChangeIncrease Decrease

–0.5% decrease from 1998to 1999

(only decrease)

–0.5% decrease from 1998to 1999

(only decrease)

1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

$0

$10

$20

$30

$40

$50


College Education: Dependence on Government Doubles

Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, p. 57, and Table 12.3, p. 265.


Average, 1979–2001:$13.7 billion

$18.5

$49.3Year-to-Year ChangeIncrease Decrease



1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

$0

$20

$40

$60

$80

$100


The Era of Big Farming

Source: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, pp. 56 and 57, and Table 12.3, pp. 265 and 270.



$18

$62

$90.1

$45.5



Average, 1988– 1998:$31

billion


Average, 1988– 1998:$31

billion

Rural and Agricultural Expenditures, in Billions of 2005 Dollars

Average Household Income


Farm Subsidies and Farmer Income

Sources: Office of Management and Budget, “Historical Tables: Budget of the United States Government, Fiscal Year 2012,” 2011, Table 3.2, pp. 56 and 57, and Table 12.3, pp. 265 and 270; U.S. Department of Agriculture, Resource Management Survey, at http://www.ers.usda.gov/briefing/wellbeing/Images/Averagefarmincomesource/Averagefarmincomesource_d.html (November 2, 2011); and U.S. Census Bureau.

$0

$25,000

$50,000

$75,000

$100,000

$0

$25

$50

$75

$100

In the early 1990s, U.S. farming income was close to the national average. In the late 1990s—when farming income surged above the national average— the government raised farming subsidies by more than 67 percent.

1988 1990 1995 2000 2005 2010

1988 1990 1995 2000 2005 2010

Average, 1999– 2010:$51.9 billionAverage,

1988– 1998:$31

billion

Farm Operators

All U.S.

$83,000

$65,500

Average, 1999– 2010:$51.9 billionAverage,

1988– 1998:$31

billion

Farm Operators

All U.S.

$83,000

$65,500

1962 1970 1980 1990 2000 2010

0

50

100

150

200

250

300


Dependence on Government Jumps 8.1 Percent in a Single Year

Source: Based on Heritage Foundation calculations sourced throughout the Index of Dependence on Government.

Index Scores

1980: 100(base year)

294294

237


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1962

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

1962

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

020406080100

120

1962 1970 1980 1990 2000 2010

0

10

20

30

40

50

60

70

1962 1970 1980 1990 2000 2010

0%

5%

10%

15%

20%

25%


1 in 5 Americans Dependent on Government

Source: Heritage Foundation calculations based on data from the U.S. Department of Education, Social Security Administration, U.S. Department of Health and Human Services, Office of Personnel Management, and the U.S. Census Bureau.

Individuals in Dependence Index (not Including Government Employees), in Millions

Percentage of Total U.S. Population Who Receive Government Assistance

1994:60.8

21.7

67.321.8%

11.7%

1994: 23.1%1994: 23.1%

In 2010, individuals receiving income from government programs took in more money ($32,748) than the average American earned in disposable income ($32,446).

1962 1970 1980 1990 2000 2010

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000$32,748

$32,446


More Income, More Dependence

Sources: U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Products Account, Table 2.1, and Heritage Foundation calculations using data from the Office of Management and Budget, U.S. Department of Education, Social Security Administration, and U.S. Department of Health and Human Services.

Income Per Capita

Disposable Personal

Income, All Americans

Disposable Personal

Income, All Americans

Amount, Americans

Who Receive

Government Assistance

Amount, Americans

Who Receive

Government Assistance

1962 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

–2%

0%

+2%

+4%

+6%

+8%

+10%

1962 1970 1980 1990 2000 2010

0

20

40

60

80

100


More than 91 Million Americans Are Dependent on Government

Source: Heritage Foundation calculations based on data from the U.S. Department of Education, Social Security Administration, U.S. Department of Health and Human Services, Office of Personnel Management, and Office of Management and Budget.

Sum of Program Participants and Government Employees, in Millions

Year-to-Year Percentage Change of Total Program Participants and Government Employment

1966: +8.5%

1991: +3.2%

2009: +4.2%

2010: +3.3%

1982: –1.8%

33.6 million

91.2 million91.2 million

–10%

–5%

0%

+5%

+10%

+15%

1963 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010


Federal Employment Growth Highest Since 1968

Sources: U.S. Department of Labor, Bureau of Labor Statistics, Current Establishment Survey, “Employees on Nonfarm Payrolls by Industry Subsectors and Selected Detail,” Table B-1, by Haver Analytics; and U.S. Department of Defense “Active Duty Military Data,” by Haver Analytics. Federal data prior to 2002 is from Office of Management and Budget, “Historical Tables: Budget of the U.S. Government, Fiscal Year 2009,” 2008, Table 17.5.

Year-to-Year Percentage Change in Federal and State Employment

+12.9%

–1.2%

+3.5%

1985: +3.3%1968: +3.5%

–1.0%

State employment increased every year from 1984 to 2008(average annual change: +1.7%)

Federal employment declined every year from 1990 to 1999(average annual change: –2.4%)

State Federal

Index of Dependence on Government, 1962–2010

Sources: Heritage Foundation calculations sourced throughout the Index of Dependence on Government.

Table 1 • ArticleName heritage.org

Year HousingHealth and

Welfare Retirement Education

Rural and Agricultural

ServicesIndex Value

Annual Percentage Change in Index

Value

1962 1 6 5 2 5 191963 1 6 5 2 6 21 11.721964 1 7 5 2 7 22 2.691965 2 6 6 2 6 22 –0.551966 2 7 6 4 4 23 5.991967 2 8 7 7 5 28 22.181968 2 9 8 9 6 34 21.581969 2 10 9 7 7 36 4.891970 3 11 9 8 7 39 7.661971 4 14 11 7 7 43 12.141972 6 17 11 7 8 49 13.601973 9 16 13 7 8 52 4.721974 9 16 14 5 5 49 –5.091975 9 21 15 7 5 57 17.151976 14 24 16 8 6 69 20.721977 20 24 18 9 9 78 13.421978 22 22 18 10 13 86 9.901979 26 22 19 12 12 91 5.041980* 30 25 20 15 10 100 10.451981 34 26 22 18 10 109 9.271982 34 25 23 14 10 106 –3.311983 36 27 24 13 12 112 6.171984 38 24 25 13 8 108 –3.551985 38 25 26 14 13 115 6.231986 38 26 27 14 14 118 3.011987 36 26 27 12 11 113 –4.351988 38 27 28 13 8 114 0.241989 38 28 29 16 7 118 4.141990 39 31 30 16 7 123 3.811991 40 37 31 17 7 132 7.341992 42 45 33 16 7 143 8.211993 47 47 34 20 9 157 10.311994 51 49 36 11 8 154 –1.851995 58 50 38 19 6 170 10.171996 56 50 39 16 6 167 –1.911997 56 49 41 15 6 168 0.701998 57 50 41 15 6 171 1.601999 55 53 41 13 10 172 1.082000 56 55 42 12 13 179 3.762001 57 59 44 12 11 183 2.242002 62 68 46 20 10 206 12.602003 64 73 48 26 12 223 8.432004 64 75 49 28 8 224 0.392005 63 75 51 34 15 237 5.892006 62 73 52 52 21 261 9.802007 70 74 56 25 12 237 –9.282008 67 81 57 23 10 239 1.122009 77 99 63 22 12 272 13.842010 87 112 65 20 10 294 8.11

* Base year

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Nearly Half of All Americans Don’t Pay Income Taxesthf_media.s3.amazonaws.com/2011/pdf/2011Indexof... · Nearly Half of All Americans Don’t Pay Income Taxes Note: Figures for