In the “makers vs. takers”(opens in new tab) debate, the line between truth and opinion is just a dot(opens in new tab) to some. That might win a debate, but it’s not a good way to run a democracy. So here’s a handy summary of what’s fake and what’s fact, to help square those pesky (mis)perceptions with reality:
- Fake: Nearly half of all Americans don’t pay taxes.
Fact: 86 percent of Americans pay taxes(opens in new tab) in the form of payroll taxes, as well as state and local taxes. Bonus fact: 37 percent of Americans are not in the labor force because they are retired, students, or unemployed. Nobody expects them to be paying taxes. - Fake: More Americans are becoming dependent on government benefits.
Fact: Less than 10 percent(opens in new tab) of all government assistance goes to non-working adults in their prime years, and much of it is in the form of emergency assistance to people who have lost their jobs. - Fake: Americans have more of an “entitlement mindset” these days.
Fact: Work is still a core value for Americans. Millions of eligible Americans don’t use programs like food stamps, welfare, Medicaid, and so on – even though they qualify(opens in new tab). Bonus fact: You think having a full stomach on food stamps is easy? Try it sometime(opens in new tab). - Fake: Poor people are the biggest freeloaders.
Fact: The three biggest tax breaks on the books in 2014(opens in new tab) are: employer-provided health insurance ($164 billion); retirement savings – mainly 401ks ($162 billion); and the home mortgage interest deduction ($99.8 billion). Bonus fact: Many Fortune 500 corporations have been able to reduce their federal(opens in new tab) and state(opens in new tab) income tax bills to zero (or less!), even in years when they were quite profitable.
For a compete mythbusting of the conservative “Makers & Takers” ideology, check out Demos Senior Fellow David Callahan’ Freeloader Fabrications(opens in new tab).