Work harder: An increasing number of folks are depending on you.

In a prior post — Work harder: “Tax payer dependents” are counting on you. — we worked the nums to show that there are more tax payer dependent adults than there are private sector workers.

Specifically, there are about 121 million private sector works and about 122 million tax payer dependent adults — 89 million working age adults who aren’t looking for work, the 12 million unemployeds, and the 22 million government employees (yes, our tax dollars pay their wages, benefits, and over-stuffed pensions)

That’s a total of 122 million adults who are dependent on 121 million private sector workers.

Below are the totals over time.

Back in 2000, there were about 11% more private sector workers than tax payer dependent adults.

The lines crossed in mid-2009 … and now, there are about 1% more tax payer dependent adults than there are private sector workers.

So, we’ve got to raise taxes on the workers to support those who are dependent on them.

Ponder that when your alarm goes off tomorrow.

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6 Responses to “Work harder: An increasing number of folks are depending on you.”

  1. Scott Says:

    Just because some people of working are not in the labor force doesn’t mean they’re “taxpayer dependent,” right? How many are actually receiving federal assistance? Those are the folks that are dependent on government. Not working age folks that aren’t in the workforce, such as stay-at-home parents and the like.

  2. TK Says:

    Don’t these numbers demand a rise in taxes?

    • Herbie Says:

      Good thought TK! If we can further deteriorate the ratio of contributors to recipients we can justify a 100% marginal rate!

    • Chris Says:

      TK – incentives matter and when you tax something you ALWAYS get less of it. If you increase taxes on work and increase rewards for dependency you will get fewer workers and more non-workers… and more charts that beg the question, “Don’t these numbers demand a rise in taxes?”

  3. The MoTown microcosm … « The Homa Files Says:

    […] Work harder: An increasing number of folks are depending on you. […]

  4. TK Says:

    Herbie and Chris – what evidence is there that top bracket earners will earn less to avoid taxes? Or that they will work longer hours if promised a lower federal rate? The most attractive jobs with the highest salaries will not be forsaken because of the top tax rate. If somebody has enough money that it is “no longer worth it” they will be replaced. Quickly.

    Perhaps a higher top rate will give corporations incentive to raise wages. This would broaden the base and expose fewer dollars to the top rate.

    Or, if they don’t like the tax rate, top earners can become entrepreneurs and return to the bottom of the income table. I think you have your incentives backwards!

    I’m not looking for a return to 70%, but it is ridiculous to argue that people will stop striving to make money because the top rate has been raised by a few pennies.

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