presentation on the distribution of federal spending and taxes in 2006
DESCRIPTION
Presentation by Molly Dahl and Kevin Perese, CBO Analysts, at the NTA Spring SymposiumTRANSCRIPT
Congressional Budget Office
The Distribution of
Federal Spending and Taxes in 2006
NTA Spring Symposium
Molly Dahl, Microeconomic Studies Division Kevin Perese, Tax Analysis Division
Full Report: http://www.cbo.gov/publication/44698
May 15, 2014
C O N G R E S S I O N A L B U D G E T O F F I C E
Overview
Extends prior CBO distributional analyses by including spending Snapshot of a single year: Calendar Year 2006 Examine Distributions by: 1) Three household types
Elderly Nonelderly with children Nonelderly without children
2) Five income groups among the nonelderly Market income quintiles
C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending and Revenues, 2006
Federal Spending
$2.4 Trillion
$2.3 Trillion
Federal Revenues
$2.7 Trillion
$2.4 Trillion
88% Allocated in CBO’s Analysis
98% Allocated in CBO’s Analysis
C O N G R E S S I O N A L B U D G E T O F F I C E
Categories of Federal Spending, 2006
Cash and Near-Cash Transfers
$785 Billion
Cash Transfers Refundable Tax Credits SSI UI TANF Means-Tested Veterans’ Benefits Black Lung Disability
Near-cash Transfers SNAP Housing Assistance Pell Grants Child Nutrition Programs WIC LIHEAP
Social Security
C O N G R E S S I O N A L B U D G E T O F F I C E
Categories of Federal Spending, 2006
Cash and Near-Cash Transfers
Health Care Transfers
$785 Billion
$481 Billion
Medicaid and CHIP Means-Tested Veterans’ Health Benefits
Social Security
Medicare
C O N G R E S S I O N A L B U D G E T O F F I C E
Categories of Federal Spending, 2006
Cash and Near-Cash Transfers
Health Care Transfers
Other Goods and
Services
$785 Billion
$481 Billion
$1,080 Billion
Other HHS Education OPM Transportation Other Veterans Affairs
Agriculture Justice Energy Other
National Defense
Social Security
Medicare
C O N G R E S S I O N A L B U D G E T O F F I C E
Categories of Federal Spending, 2006
Unallocated Spending
Cash and Near-Cash Transfers
Health Care Transfers
Other Goods and
Services
Social Security
National Defense
Medicare
Interest on Debt
$785 Billion
$481 Billion
$1,080 Billion
$312 Billion
Total Spending $2.7 Trillion
Interest On Debt
C O N G R E S S I O N A L B U D G E T O F F I C E
Spending on Cash and Near-Cash Transfers, by Type of Household, 2006
0
100
200
300
400
500
Other
(Billions of dollars)
Elderly
Social Security
Nonelderly Without Children
Nonelderly With Children
C O N G R E S S I O N A L B U D G E T O F F I C E
Spending on Health Care Transfers, by Type of Household, 2006
0
100
200
300
400
500(Billions of dollars)
Elderly
Medicare
Medicaid and Other
Nonelderly Without Children
Nonelderly With Children
C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Taxes, by Type of Household, 2006
0
400
800
1,200(Billions of dollars)
Elderly Nonelderly Without Children
Nonelderly With Children
C O N G R E S S I O N A L B U D G E T O F F I C E
Average Transfers, Taxes, and Transfers Minus Taxes, by Type of Household, 2006
-20,000
-10,000
0
10,000
20,000
30,000(Dollars per household)
Elderly Nonelderly without Children
Nonelderly with Children
Transfers minus Taxes
Taxes
Transfers
C O N G R E S S I O N A L B U D G E T O F F I C E
Average Market Income Plus Transfers Minus Taxes by Type of Household, 2006
0
20,000
40,000
60,000
80,000
100,000
120,000(Dollars per household)
Elderly Nonelderly without Children
Nonelderly with Children
UP 25% DOWN 17% DOWN 20%
C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending, 2006
Unallocated Spending
Cash and Near-Cash Transfers
Health Care Transfers
Other Goods and
Services
$785 Billion
$481 Billion
$1,080 Billion
$312 Billion
Total Spending: $2.7 Trillion
C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending on Other Goods and Services, by Type of Household, 2006
0
200
400
600(Billions of dollars)
Elderly Nonelderly without Children
Nonelderly with Children
Allocated by
Share of
Population
Allocated by
Share of
Market Income
C O N G R E S S I O N A L B U D G E T O F F I C E
Average Spending Minus Taxes, by Type of Household, 2006
-20,000
-10,000
0
10,000
20,000
30,000(Dollars per household)
Elderly Nonelderly without Children
Nonelderly with Children
Transfers plus Other Goods and Services (by Share of Population) minus Taxes
Transfers plus Other Goods and Services (by Share of Market Income) minus Taxes
Transfers minus Taxes
C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending and Revenues, 2006 Allocated to Nonelderly Households
Federal Spending
$2.4 Trillion
$2.7 Trillion
Federal Revenues
$1.5 Trillion
$2 Trillion
Nonelderly
Nonelderly Elderly
Elderly
C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending, 2006 Allocated to Nonelderly Households
Federal Spending
$2.7 Trillion
$1.5 Trillion
Cash and Near-Cash
$175 Billion
Other Goods and Services
$375 Billion
Health Care
$920 Billion
Nonelderly Elderly
C O N G R E S S I O N A L B U D G E T O F F I C E
Spending on Cash and Near-Cash Transfers for Nonelderly Households, by Income Group, 2006
0
100
200(Billions of dollars)
Lowest Quintile
Highest Quintile
Middle Quintile
Social Security
Other Cash
Transfers
Near-Cash
Transfers
C O N G R E S S I O N A L B U D G E T O F F I C E
Spending on Health Care Transfers for Nonelderly Households, by Income Group, 2006
0
100(Billions of dollars)
Lowest Quintile
Highest Quintile
Middle Quintile
Medicare
Medicaid and
Other
C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Revenues, 2006 Allocated to Nonelderly Households
$2.4 Trillion
Federal Revenues
$2 Trillion
Highest Quintile
Elderly Nonelderly
C O N G R E S S I O N A L B U D G E T O F F I C E
Average Transfers, Taxes, and Transfers Minus Taxes, for Nonelderly Households, 2006
-75,000
-50,000
-25,000
0
25,000
50,000
75,000(Dollars per household)
Lowest Quintile
Highest Quintile
Middle Quintile
Transfers minus Taxes
Taxes
Transfers
C O N G R E S S I O N A L B U D G E T O F F I C E
Average Market Income Plus Transfers Minus Taxes for Nonelderly Households, 2006
0
50,000
100,000
150,000
200,000
250,000
300,000(Dollars per household)
Lowest Quintile
Highest Quintile
Middle Quintile
UP 101% DOWN 14%
DOWN 27%
C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending on Other Goods and Services Allocated to Nonelderly Households, 2006
$920 Billion
Lowest Quintile
Allocated by Share of Population
Allocated by Share of
Market Income
Highest Quintile
Other Goods and Services Transfers
$550 Billion
C O N G R E S S I O N A L B U D G E T O F F I C E
Average Spending Minus Taxes for Nonelderly Households, 2006
-75,000
-50,000
-25,000
0
25,000
Transfers minus Taxes
(Dollars per household)
Lowest Quintile
Highest Quintile
Middle Quintile
Transfers plus Other Goods and Services (by Share of Population) minus Taxes
Transfers plus Other Goods and Services (by Share of Market Income) minus Taxes
C O N G R E S S I O N A L B U D G E T O F F I C E
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