The car tax has been in the news recently in Connecticut and Virginia, the only two states that levy it. It’s important to distinguish this tax, which is a property tax on actual cars, from a sales tax that affects the...
- Generational Equity: Which Age Groups Pay More Tax, and Which Recei...
Generational Equity: Which Age Groups Pay More Tax, and Which Receive More Government Spending?
Special Report No. 156
Do some age groups in America get a better deal from government than others? As America's growing number of retirees strains the nation's fiscal system, that question has become more important than ever. While many studies explore the fairness of taxes and government spending across income groups, few studies explore the distribution of tax burdens and government spending across age groups in the United States.
• As the Baby Boom generation prepares to retire, lawmakers should be aware of the distribution of taxes and government spending across age groups.
• America's youngest households aged 25 and under received $2.32 in government spending for each dollar of taxes paid in 2004. Middle-aged households aged 45 to 54 received $0.73 per tax dollar, and America's oldest households aged 75 and over received $4.93 per dollar of taxes paid;
• As a group, households aged 35 to 64 pay more in taxes than they receive in government spending, while households under age 35 and over age 64 receive more government spending than they pay in taxes. Overall between $376 billion and $872 billion per year is fiscally transferred from middle-aged groups to the youngest and oldest Americans each year through government taxes and spending;
• Over a lifetime, government spending follows a U-shaped pattern, with large education and welfare spending in youth and large Social Security and Medicare payments in old age. But even within each age group, there are large differences in taxes and government spending across households at different income levels.
Federal mineral royalty revenues are often overlooked, but they represent a substantial portion of some states’ revenues. Certain minerals, such as coal, oil, and gas, are available for extraction and...
As Congress moves closer to debating fundamental tax reform, the amount U.S. multinational firms pay in taxes on their foreign income has become a common topic for the press and among politicians. Some of the more sensational press stories and...
Ask a Tax Expert
Contact information for Tax Foundation policy staff Ask
Join the Tax Foundation's fight for sound tax policy Go
Tax By State
For information on your state, select it from the drop-down menu.