Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

How the Bottom 20% Lives – On Your Taxes
Gateway Pundit ^ | June 02, 2025 | Staff

Posted on 06/02/2025 12:54:53 PM PDT by Red Badger

Despite Democrat claims about the rich not paying their fair share, IRS data shows that the top 20% of earners pay more than 65% of all federal income taxes, while the bottom 20% pay effectively nothing, receiving more in benefits than they are paying in taxes.

According to data from the Congressional Budget Office (CBO) and the U.S. Census Bureau, the bottom 20% of U.S. income earners (households in the lowest income quintile) receive a significant portion, often the majority, of their income from government transfers such as Medicaid, SNAP (food stamps), housing subsidies, and refundable tax credits like the Earned Income Tax Credit (EITC).

Roughly 80% of Americans are taxpayers, while the remaining 20% are net tax consumers. To put it in simple terms: taxpayers eat what they kill, while tax consumers live off what others have hunted. They rely on the labor and productivity of the working class to sustain their standard of living.

Although liberals often portray welfare recipients as disabled or unable to work, the reality is that most could work, but choose not to. According to the Congressional Budget Office, 60% of working-age adults in the welfare-dependent population did not work at all during the year, and many were not officially classified as disabled.

Among recipients of SNAP alone, roughly 28% are classified as able-bodied adults without dependents (ABAWDs). Data from the Census Bureau and the Department of Health and Human Services show that roughly 40–50% of these individuals are able-bodied adults of working age. And yet, they have somehow managed to game the system and continue receiving benefits.

The controversy over the “Big Beautiful Bill” was, as usual, misrepresented. The media framed it as cruel cuts, as if benefits were being stripped from some old, crippled woman born with her heart on the outside, raising several mixed-race children. A “10% cut,” for example, is always portrayed as meaning a disabled or aged person living on $2,000 a month will now get $1,800.

But that’s generally not what a budget cut means. In most cases, it simply means the bar is being raised to qualify for benefits, so that healthy, working-age people are encouraged to go back to work.

And proof of this is that Democrats are always quick to say, “With the new cuts, 12 million people could lose their benefits.” Yes, that’s exactly what a cut is supposed to do: reduce the total number of people on benefits, not necessarily reduce payments to those who truly need them. As is so often the case in politics between the two parties, terms need to be defined. Most people agree that those who truly need help should get it, we just want to narrow the definition of who qualifies.

Democrats portray benefits as a temporary lifeline, but in reality, they often create long-term dependence. States routinely report challenges in getting these individuals into job training or employment programs.

Meanwhile, many recipients get more in refundable tax credits than they owe, along with a wide range of benefits from both federal and state programs, including SNAP (food stamps), Medicaid, Section 8 housing, utility subsidies, and child tax credits. With their rent, medical care, food, and other expenses covered without working, they have little incentive to put in the effort that would disqualify them from receiving free money.

Compounding the issue, many of the households receiving benefits suffer from chronic social breakdown. According to the U.S. Census Bureau, more than 70% of children in low-income, inner-city communities are raised in fatherless homes. These children face dramatically worse outcomes across the board: the National Fatherhood Initiative reports that children without fathers are four times more likely to live in poverty, twice as likely to drop out of school, and more likely to engage in criminal activity or be incarcerated.

Studies from the Brookings Institution and Pew Charitable Trusts further show that welfare dependency is often passed down through generations. A child whose parents received public assistance is significantly more likely to end up on welfare themselves, and the probability increases further if both parents and grandparents relied on benefits. In some communities, families are now entering their fourth generation of government dependence, with no expectation or cultural pressure to exit the welfare system.

And the left either denies that any of this is true — or, worse, believes it’s a good thing.


TOPICS: Business/Economy; Food; Government; Society
KEYWORDS:
Navigation: use the links below to view more comments.
first 1-2021-37 next last

1 posted on 06/02/2025 12:54:53 PM PDT by Red Badger
[ Post Reply | Private Reply | View Replies]

To: Red Badger
It's "riot control."

Imagine if the government suddenly cut off entitlements.

Suddenly, tens of millions stop paying their rents and credit cards bills. Economic crisis ensues.

That, and tens of millions violently raiding supermarkets and liquor stores. And other stores.

In Tom Wolfe's Bonfire of the Vanities, a race hustling black preacher called it "steam control." If whitey don't pay, the pressure of the steam in the boiler will increase, until the boiler explodes.

2 posted on 06/02/2025 1:02:15 PM PDT by Angelino97
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger
According to data from the Congressional Budget Office (CBO) and the U.S. Census Bureau, the bottom 20% of U.S. income earners (households in the lowest income quintile) receive a significant portion, often the majority, of their income from government transfers such as Medicaid, SNAP (food stamps), housing subsidies, and refundable tax credits like the Earned Income Tax Credit (EITC).

'Nonpartisan' CBO's health division overwhelmingly staffed by Dems, GOP-aligned group says

Always be suspicious of anything the CBO says as it is either wrong or has been manipulated to align with Dem talking points.
3 posted on 06/02/2025 1:05:15 PM PDT by SoConPubbie (Trump has all the right enemies, DeSantis has all the wrong friends.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger
the rich not paying their fair share

When will the Right and Patriots stand up to this b.s.?

The gov't and fellow gangster extortionists demand their victims pay them their "fair" share????

4 posted on 06/02/2025 1:05:59 PM PDT by Jim W N (MAGA by restoring the Gospel of the Grace of Christ (Jude 3) and our Free Constitutional Republic!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Angelino97

Whitey’s tired of paying and paying.


5 posted on 06/02/2025 1:07:21 PM PDT by sauropod (Make sure Satan has to climb over a lot of Scripture to get to you. John MacArthur Ne supra crepidam)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Red Badger

Here in the USA, welfare is in our DNA, and has been since the 1960s.


6 posted on 06/02/2025 1:09:03 PM PDT by ComputerGuy
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

So what’s the cost of these 28% freeloaders?

Medicaid
Welfare

It’s probably 1/4 of tax revenue.


7 posted on 06/02/2025 1:09:04 PM PDT by TheThirdRuffian (Orange is the new brown)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TheThirdRuffian

Medicaid
Welfare
SNAP
WIC
SCHOOL LUNCH PROGRAMS
EBT
Many more..................


8 posted on 06/02/2025 1:10:51 PM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Red Badger

And many that are disabled are lying about it or manipulating the system.

My deadbeat brother-in-law hasn’t held a steady paycheck in nearly 20 years and my wife’s mother generally supports him, my wife’s sister their kids. The guy is 60 and has never owned a home, doesn’t pay rent, and freeloads off family. He is morbidly obese and used that to claim partial disability with the VA for a minor non-combat injury that wouldn’t be a problem if he didn’t eat 4,000 calories per day. He’s not actually disabled, but it’s easier for government doctors to just give people the green light. My sister-in-law has been “praying” he’ll be found fully disabled so they can get more money. What honorable person actually prays for their spouse to be fully disabled? They are always looking for free stuff.

Every year they brag about the size of their “tax refund” and I tell my wife it’s not a refund, it’s a “tax redistribution” that comes out of our pocket.


9 posted on 06/02/2025 1:12:01 PM PDT by The Unknown Republican
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

Found the answer: we pay in Medicaid and welfare to able bodied adults $504 billion.


10 posted on 06/02/2025 1:12:30 PM PDT by TheThirdRuffian (Orange is the new brown)
[ Post Reply | Private Reply | To 1 | View Replies]

To: sauropod

what’s whitey gonna do about it?


11 posted on 06/02/2025 1:13:50 PM PDT by bankwalker (Feminists, like all Marxists, are ungrateful parasites.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Red Badger

Found the answer: we pay in Medicaid and welfare to able bodied adults $504 billion.

Of the 5.1 trillion total income tax revenue

504/5100 =0.0988

So 10% of your taxes goes to just deadbeats.


12 posted on 06/02/2025 1:14:38 PM PDT by TheThirdRuffian (Orange is the new brown)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

It’s actually the very top tier we should be complaining about.

The bankers don’t pay taxes because they set up trusts prior to 1913.

They can have as much money as they want whenever they want by printing it. Then we suffer from the inflation it causes, which is another tax.

The fed needs to go. So does the illegal revenue agency.


13 posted on 06/02/2025 1:18:15 PM PDT by reasonisfaith (What are the personal implications if the Resurrection of Christ is a true event in history?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: The Unknown Republican

We used to have a neighbor that had a teenage daughter same age as mine at the time.

Her mother wanted her to ‘hurry up and get pregnant’ so they could get more money from the government...............


14 posted on 06/02/2025 1:18:23 PM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
[ Post Reply | Private Reply | To 9 | View Replies]

To: SoConPubbie
Always be suspicious of anything the CBO says as it is either wrong or has been manipulated to align with Dem talking points.


15 posted on 06/02/2025 1:20:21 PM PDT by Angelino97
[ Post Reply | Private Reply | To 3 | View Replies]

To: Red Badger

True.


16 posted on 06/02/2025 1:24:54 PM PDT by Robert A Cook PE (Method, motive, and opportunity: No morals, shear madness and hatred by those who cheat.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Red Badger

If you look at the benefits, most of it is Social Security, Medicare, and Medicaid. The bulk of the money goes to older people who have paid in all their lives, and to doctors and hospitals. Things like SNAP and EITC are not as big.

If you put together SNAP, EITC, and the child tax credit, that’s about 4% of the budget. Social Security is 22%, Medicare is 14%, and Medicaid is 8%.


17 posted on 06/02/2025 1:44:05 PM PDT by proxy_user
[ Post Reply | Private Reply | To 1 | View Replies]

To: proxy_user
Social Security is 22%, Medicare is 14%, and Medicaid is 8%.

Social Security should be 0% of the budget. I can understand Medicare and Medicaid being 22%.

18 posted on 06/02/2025 1:48:31 PM PDT by 1Old Pro
[ Post Reply | Private Reply | To 17 | View Replies]

To: 1Old Pro

It is my understanding that SS payments come from general revenue. There is no ‘Trust Fund’.


19 posted on 06/02/2025 1:55:46 PM PDT by ComputerGuy
[ Post Reply | Private Reply | To 18 | View Replies]

To: Red Badger

Yeah, and the top 10% lives off the government tit. How did the federalist society getting 400,000 a year, all those jobs BLM getting USAID money, all those do nothing commissions and agencies DOGE discovered. Contracts for new Air Force ones that are 10 years behind schedule with no delivery in sight. Every federal judge having a wife or daughter with some cushy hundred and $50,000 plus government funded NGO. The connected getting sweetheart contracts from now bid government action. So spare us the assaholic lectures.

This is like when they blamed the 2008 housing crash on poor people taking advantage of those poor bankers.


20 posted on 06/02/2025 2:06:05 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI….)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-37 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson