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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
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To: Red Badger

Stacey Abrams getting 20 million government dollars for a brand new climate justice NGO. The list is endless. Probably a third of our government expenditures go to the very rich with these shady back door deals. It’s not going to the bottom 20%,. They shouldn’t be getting a handout, but what they get us a pittance compared to what connected get.


21 posted on 06/02/2025 2:09:23 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI….)
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To: Red Badger

Soros, Norm Ison, Southern poverty Law Center, all of them make a handsome living in the tens of millions from USAID, and government reimbursement for the continual stream of lawsuits they file. Every time they fall a lawsuit the government reimburses them for all their legal expenses which they heavily pad. Again, not saying the poor deserves something, but it’s getting pretty boring seeing these stories that the bottom 20% of the country is somehow bankrupting us… When the likely opposite is true that the top 20% is where the bankruptcy of America is coming from. They just structure their government teat differently.


22 posted on 06/02/2025 2:11:46 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI….)
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To: Red Badger

And good old Harvard and the rest of the Ivy League. How much do they leech off the government with “research grants” etc?


23 posted on 06/02/2025 2:13:02 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI….)
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To: Angelino97

“ It’s “riot control.”….Imagine if the government suddenly cut off entitlements.”

And when DOGE cut off the USAID money, the foundations, and all the graft… We witnessed, and are still witnessing a legal courtroom lawsuit riot.


24 posted on 06/02/2025 2:17:24 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI….)
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To: Red Badger
Despite Democrat claims about the rich not paying their fair share,

The rich kids tax bracket is 34% compared to the 22% bracket kids that i hang out with. Pretty sure that if i was a rich kid I'd feel like i was unfairly treated.
25 posted on 06/02/2025 2:25:40 PM PDT by know.your.why
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To: Red Badger

Better title.

How fedgov ruined the lives of the bottom 50% and are working on making it 80%


26 posted on 06/02/2025 2:41:34 PM PDT by Pollard (Zone 6b)
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To: Angelino97

Until the republicans can get a marketing company to give them lessons on explaining things that the masses understand, they will continue to have horrible town halls like they did this weekend. It definitely seems they want to lose.


27 posted on 06/02/2025 2:46:24 PM PDT by napscoordinator (DeSantis is a beast! Florida is the freest state in the country! )
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To: Red Badger

Been that way for decades. The rich pay far more so the “rich need to pay their fair share” has always been a lie.

A simple graph could easily show this but conservatives suck at messaging.


28 posted on 06/02/2025 2:49:50 PM PDT by maddog55 (The only thing systemic in America is the left's hatred of it!)
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To: Red Badger

I am right now far more concerned about how the self appointed elite are living on my taxes. DOGE cuts now.


29 posted on 06/02/2025 3:02:25 PM PDT by AndyJackson
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To: Angelino97
Imagine if the government suddenly cut off entitlements.

While funding the NGO race baiters who make bank off of pusing issues like this.

30 posted on 06/02/2025 3:03:33 PM PDT by AndyJackson
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To: Angelino97

So that makes it extortion. Right? Yeah, I thought so.


31 posted on 06/02/2025 3:07:25 PM PDT by Sequoyah101 (Donald John Trump. First man to be Elected to the Presidency THREE times since FDR.)
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To: Sequoyah101
It doesn't make it right.

It might make it necessary.

32 posted on 06/02/2025 3:24:54 PM PDT by Angelino97
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To: Red Badger
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.

Cut out the handouts.

They'll never work as long as they are being supported.

Additionally, I'll bet a lot of the rest of them are not as disabled as they claim.

33 posted on 06/02/2025 4:18:26 PM PDT by metmom ( He who testifies to these things says, “Surely I am coming soon." Amen. Come, Lord Jesus.”)
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To: Red Badger

This is why I like the tariff because everyone pays the same duty.


34 posted on 06/02/2025 4:19:06 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: null and void; aragorn; EnigmaticAnomaly; kalee; Kale; AZ .44 MAG; Baynative; bgill; bitt; ...

P


35 posted on 06/02/2025 4:41:13 PM PDT by bitt (<img src=' 'width=30%>)
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To: Red Badger

Both of my parents were born and raised in or around a tiny village located in the north woods. They survived the Great Depression and after my father got back from WWII they left that village and found jobs in a city, where I was born and raised.

In that village there are at least five families with histories of living there from the 1800s and almost all of them have lived off of welfare. A tiny handful of those family members left to actually work. To this day I watch them try to find free stuff, whine about being needy, and waiting for the free food trucks and free giveaways.

We own the family home up there and when we visit those same welfare families drive around in expensive ATV/UTVs, have a couple of dirt bikes, and always have some of the latest in outdoor recreational items. My wife and I make a very respectable income but do not think we can afford all of those neat toys while they live off our large tax payments.


36 posted on 06/02/2025 6:51:53 PM PDT by OldMissileer (Atlas, Titan, Minuteman, PK. Winners of the Cold War)
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To: ComputerGuy
There is no ‘Trust Fund’.

Correct - total scam. Should be partially made as individual owned and managed accounts. Nobody has the courage to address this house of cards.

37 posted on 06/03/2025 6:01:22 AM PDT by 1Old Pro
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