No. of Recommendations: 14
"UK now spends more on welfare than it earns in income tax — is America heading the same way?"
Does that "report" note that income tax provides a significantly smaller proportion of UK government revenue, than in the US?
From the net sifter:
Income tax is the UK government's largest single source of revenue, funding approximately 27% to 28% of the total public sector budget.For context on how the broader budget is funded, the top three contributors account for nearly 60% of all government receipts: Income Tax: ~28%, National Insurance Contributions (NICs): ~18%, Value Added Tax (VAT): ~17%
USians pay neither a VAT, nor national medical insurance.
Individual income taxes account for about half (approximately 49% to 53%) of the total revenue collected by the U.S. federal government. The remaining federal revenue primarily comes from: Payroll taxes: Around 35% (funds Social Security and Medicare). Corporate income taxes: Around 9% to 11%. Other taxes and fees: Roughly 5% (includes tariffs, excise taxes, and estate taxes)
Look back in the 50s, and see the government received about 27% of revenue from the corporate income tax, vs 48% from the individual income tax. But then the US went "supply side", and "unburdened" corporations, and the rich, at the expense of the Proles.
USian social spending, as a percent of government expenditure.
Social services and income security programs—including Social Security, Medicare, Medicaid, and various safety-net initiatives—account for the majority of US federal spending, typically comprising over 60% of total government expenditure when broadly defined.Specific proportions of total federal spending vary by program: Social Security: 22%, Health and Medicare: 27% (14% for general health programs, 13% for Medicare), Income Security (e.g., SNAP, unemployment): 10%, Veterans Benefits and Services: 6%, Education, Training, Employment, and Social Services: 2%–5%
I recommend a small book by Darrell Huff "How To Lie With Statistics".
Steve
