The percentage of Americans that paid no income tax in 2008 rose to 34% according to a recent study by the conservative think-tank Heritage Foundation. For comparison, in 1963 the percentage of Americans paying no tax was 16%. The study is the annual update of the "Index of Dependence on Government" and can be found at http://tiny.cc/Lvavq.
As the U.S. Congress come closer to passing dramatic new healthcare legislation that will further increase government benefits, we must ask ourselves; How Much can the Productive Sector of Society Support? We have record levels of future projected U.S. budget deficits and record levels of population percentage living off of the government. It would seem that at some point we need entitlement cut, not expansion. As the percentage of people who would get hurt by entitlement cut grows, the political math to actually have such cuts gets more challenging.
p.s. Some have asked who writes this Blog. All entries on ths Blog are written by the professionals at Payne Wealth Partners and are part of our way to share our thinking with clients, prospective clients, and other interested parties.