08-19-06 - 1

In the US tax system (like most) there are many demographic transfers of money. Overall all the money comes from citizens and goes back to citizens (we'll ignore for now that some goes to foreign corporations or foreign governments). It also generally flows from the rich to the poor, though perhaps not so much as you think when you include sales taxes and where government contracting money tends to go.

It also flows strongly in other ways that aren't often acknowledged :

honest -> cheaters ; this is not just about reporting your taxes, but also about business that lobby questionably, etc.

renters -> homeowners ; bailouts too, eg. when they do disaster bailouts, that's a huge subsidy of homeowners, and in fact massive government spending to develop highways & suburbs has been a huge subsidy of homeowners & builders. Mostly this is the interest tax credit, though. Property tax does not balance this since it doesn't even pay for the infrastructure required to service & access your home.

single -> married w/ children ; there are massive tax breaks for marriage & children, but perhaps even more signficant is the amount of government spending on children, in Education, health care, etc.

Basically honest, wealthy, single, childless renters are huge money providers to the rest of the demographics.

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old rants