The Progressivity of Taxes and Transfers

 From Harvard Econ Professor, Greg Mankiw

To update one of the tables for the next edition of my favorite textbook, I have been looking at the new CBO report on the distribution of income and taxes. I found the following calculations, based on the numbers in the CBO's Table 7, illuminating. Because transfer payments are, in effect, the opposite of taxes, it makes sense to look not just at taxes paid, but at taxes paid minus transfers received. For 2009, the most recent year available, here are taxes less transfers as a percentage of market income (income that households earned from their work and savings):
Bottom quintile: -301%
Second quintile: -42%
Middle quintile: -5%
Fourth quintile: 10%
Highest quintile: 22%

Top one percent: 28%

The negative 301% means that a typical family in the bottom quintile receives about $3 in transfer payments for every dollar earned.

Bill Note: The CBO uses all transfers in (including State and Local), but only Federal Taxes paid.   Therefore, since State and Local taxes are highly progressive, each quintiile would get progressively more positive as you move up the curve, with the middle class likely moving into a positive percentage, and the top quintile paying even more.

U12 Soccer

Pictures from Katie's final regular season game against Eden Prarie

Sunday morning stroll

U10-A Girls Soccer Team

Our U10 Spring Soccer travel team.

Meet the Parents

Pictures of Max's mother (dam Noel, a Lab) and father (sire Dakota, a Poodle).

Balsam Wake

Spent the day in Balsam Wake, Wisconsin yesterday at our friends' cabin.

All I want to do is DANCE

This is back from March. Katie participated in both the one week Jr. Hawkettes Dance Camp which incorporates middle and elementary schoolers in different groups. She also was part of the semester long Grandview Middle School Dance Team.

Tikki Tembo

Emily is away at Wolfe Ridge with the fourth grade class for the week. But here is her grade's music concert from earlier this month.

First Run

Yesterday the lake was flat and the water was warm (well ... warmer).   I geared up, and Alison drove.

Welcome Max

Welcome to the family Maximilian Moose Moore ("Max").  

He is a 13-week old Labradoddle born February 9, 2012.  His dad is a poodle and his mother a Lab.  He looks more lab-ish, although some think he looks almost Golden Retriever, and his face almost Bloodhound.

We are settling in to the new routine.

 
Meeting his new buddy, Pink, a Golden Retriever pup picked up the same day by our friends.