Taxes in USA Exceed Basic Costs of Living

May 4, 2012 Taxation in USA

Taxes Exceed Cost of Food in USAWASHINGTON D.C. – This year US citizens will see more of their income go towards paying taxes than go towards the necessities of life, however, an increasing number of Americans are enjoying subsidized items and services at the expense of other taxpayers.

The latest study published by the non-government organization Tax Foundation on May 3rd has shown that in 2012 US citizens will pay out 3.9 percent more in taxes than the entire population of the country will spend annually on clothing, food and housing combined.

This year Americans will pay out a total of USD 4.4041 trillion in taxes, and will spend approximately USD 4.2521 trillion on food, housing and clothing. The results of the study indicated that prior to 1980 the total taxes collected from US taxpayers each year was less than the amount spent by the whole population of the USA on essential costs of living.The trend was reversed in 1982, and since then the total tax collections have exceeded the spending on necessities of life. Historically, the difference between taxes paid and the amount spent on living essentials reached its widest point in the year 2000, when tax collections from the public exceeded living costs by 19 percent.

However, the study also found that the cost of living will outweigh families’ expenditures on taxation if the calculations include individuals’ outgoings for healthcare and transportation. The Tax Foundation noted that “…increasingly, taxes paid by some cover basic living expenses for others,” pointing out that over the years the government of the USA has steadily increased the national expenditures on social benefits and subsidies. Between 1965 and 2010 the US government has more than tripled its payments to social welfare programs, greatly reducing the cost of basic staples of life for some Americans.

Photo by Project GreenBag