Presentation by Molly Dahl and Kevin Perese, CBO Analysts, at the NTA Spring Symposium

1. Congressional Budget Office
The Distribution of
Federal Spending and Taxes in 2006
NTA Spring Symposium
Molly Dahl, Microeconomic Studies Division
Kevin Perese, Tax Analysis Division
Full Report: http://www.cbo.gov/publication/44698
May 15, 2014

2. C O N G R E S S I O N A L B U D G E T O F F I C E
Overview
Extends prior CBO distributional analyses by including spending
Snapshot of a single year: Calendar Year 2006
Examine Distributions by:
1) Three household types
Elderly
Nonelderly with children
Nonelderly without children
2) Five income groups among the nonelderly
Market income quintiles

3. C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending and Revenues, 2006
Federal
Spending
$2.4
Trillion
$2.3
Trillion
Federal
Revenues
$2.7
Trillion
$2.4
Trillion
88% Allocated in CBO’s Analysis
98% Allocated in CBO’s Analysis

4. C O N G R E S S I O N A L B U D G E T O F F I C E
Categories of Federal Spending, 2006
Cash and
Near-Cash
Transfers
$785
Billion
Cash Transfers
Refundable Tax Credits
SSI
UI
TANF
Means-Tested Veterans’ Benefits
Black Lung Disability
Near-cash Transfers
SNAP
Housing Assistance
Pell Grants
Child Nutrition Programs
WIC
LIHEAP
Social Security

5. C O N G R E S S I O N A L B U D G E T O F F I C E
Categories of Federal Spending, 2006
Cash and
Near-Cash
Transfers
Health Care
Transfers
$785
Billion
$481
Billion
Medicaid and CHIP
Means-Tested Veterans’ Health Benefits
Social Security
Medicare

6. C O N G R E S S I O N A L B U D G E T O F F I C E
Categories of Federal Spending, 2006
Cash and
Near-Cash
Transfers
Health Care
Transfers
Other
Goods and
Services
$785
Billion
$481
Billion
$1,080
Billion
Other HHS
Education
OPM
Transportation
Other Veterans Affairs
Agriculture
Justice
Energy
Other
National Defense
Social Security
Medicare

7. C O N G R E S S I O N A L B U D G E T O F F I C E
Categories of Federal Spending, 2006
Unallocated
Spending
Cash and
Near-Cash
Transfers
Health Care
Transfers
Other
Goods and
Services
Social Security
National Defense
Medicare
Interest on
Debt
$785
Billion
$481
Billion
$1,080
Billion
$312
Billion
Total Spending
$2.7 Trillion
Interest
On Debt

8. C O N G R E S S I O N A L B U D G E T O F F I C E
Spending on Cash and Near-Cash Transfers,
by Type of Household, 2006
0
100
200
300
400
500
Other
(Billions of dollars)
Elderly
Social Security
Nonelderly
Without Children
Nonelderly
With Children

9. C O N G R E S S I O N A L B U D G E T O F F I C E
Spending on Health Care Transfers,
by Type of Household, 2006
0
100
200
300
400
500
(Billions of dollars)
Elderly
Medicare
Medicaid
and Other
Nonelderly
Without Children
Nonelderly
With Children

10. C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Taxes, by Type of Household, 2006
0
400
800
1,200
(Billions of dollars)
Elderly Nonelderly
Without Children
Nonelderly
With Children

11. C O N G R E S S I O N A L B U D G E T O F F I C E
Average Transfers, Taxes, and Transfers Minus Taxes,
by Type of Household, 2006
-20,000
-10,000
0
10,000
20,000
30,000
(Dollars per household)
Elderly Nonelderly without
Children
Nonelderly with
Children
Transfers
minus
Taxes
Taxes
Transfers

12. C O N G R E S S I O N A L B U D G E T O F F I C E
Average Market Income Plus Transfers Minus Taxes
by Type of Household, 2006
0
20,000
40,000
60,000
80,000
100,000
120,000
(Dollars per household)
Elderly Nonelderly
without Children
Nonelderly
with Children
UP 25% DOWN 17% DOWN 20%

13. C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending, 2006
Unallocated
Spending
Cash and
Near-Cash
Transfers
Health Care
Transfers
Other
Goods and
Services
$785
Billion
$481
Billion
$1,080
Billion
$312
Billion
Total Spending:
$2.7 Trillion

14. C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending on Other Goods and Services,
by Type of Household, 2006
0
200
400
600
(Billions of dollars)
Elderly Nonelderly
without Children
Nonelderly with
Children
Allocated
by
Share
of
Population
Allocated
by
Share
of
Market
Income

15. C O N G R E S S I O N A L B U D G E T O F F I C E
Average Spending Minus Taxes,
by Type of Household, 2006
-20,000
-10,000
0
10,000
20,000
30,000
(Dollars per household)
Elderly Nonelderly
without Children
Nonelderly with
Children
Transfers plus Other Goods and Services
(by Share of Population)
minus Taxes
Transfers plus Other Goods and Services
(by Share of Market Income)
minus Taxes
Transfers
minus Taxes

16. C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending and Revenues, 2006
Allocated to Nonelderly Households
Federal
Spending
$2.4
Trillion
$2.7
Trillion
Federal
Revenues
$1.5
Trillion
$2
Trillion
Nonelderly
Nonelderly Elderly
Elderly

17. C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending, 2006
Allocated to Nonelderly Households
Federal
Spending
$2.7
Trillion
$1.5
Trillion
Cash and
Near-Cash
$175
Billion
Other
Goods and Services
$375
Billion
Health
Care
$920
Billion
Nonelderly Elderly

18. C O N G R E S S I O N A L B U D G E T O F F I C E
Spending on Cash and Near-Cash Transfers
for Nonelderly Households, by Income Group, 2006
0
100
200
(Billions of dollars)
Lowest
Quintile
Highest
Quintile
Middle
Quintile
Social
Security
Other
Cash
Transfers
Near-
Cash
Transfers

19. C O N G R E S S I O N A L B U D G E T O F F I C E
Spending on Health Care Transfers
for Nonelderly Households, by Income Group, 2006
0
100
(Billions of dollars)
Lowest
Quintile
Highest
Quintile
Middle
Quintile
Medicare
Medicaid
and
Other

20. C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Revenues, 2006
Allocated to Nonelderly Households
$2.4
Trillion
Federal
Revenues
$2
Trillion
Highest Quintile
ElderlyNonelderly

21. C O N G R E S S I O N A L B U D G E T O F F I C E
Average Transfers, Taxes, and Transfers Minus Taxes,
for Nonelderly Households, 2006
-75,000
-50,000
-25,000
0
25,000
50,000
75,000
(Dollars per household)
Lowest
Quintile
Highest
Quintile
Middle
Quintile
Transfers
minus
Taxes
Taxes
Transfers

22. C O N G R E S S I O N A L B U D G E T O F F I C E
Average Market Income Plus Transfers Minus Taxes
for Nonelderly Households, 2006
0
50,000
100,000
150,000
200,000
250,000
300,000
(Dollars per household)
Lowest
Quintile
Highest
Quintile
Middle
Quintile
UP 101%
DOWN 14%
DOWN 27%

23. C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Spending on Other Goods and Services
Allocated to Nonelderly Households, 2006
$920 Billion
Lowest
Quintile
Allocated
by Share of
Population
Allocated
by Share of
Market
Income
Highest
Quintile
Other Goods and ServicesTransfers
$550 Billion

24. C O N G R E S S I O N A L B U D G E T O F F I C E
Average Spending Minus Taxes
for Nonelderly Households, 2006
-75,000
-50,000
-25,000
0
25,000
Transfers
minus Taxes
(Dollars per household)
Lowest
Quintile
Highest
Quintile
Middle
Quintile
Transfers plus
Other Goods and Services
(by Share of Population)
minus Taxes
Transfers plus
Other Goods and Services
(by Share of Market Income)
minus Taxes

25. C O N G R E S S I O N A L B U D G E T O F F I C E
Recap
Extends prior CBO distributional analyses by including spending
More spending on elderly households than taxes paid by those
households in 2006; the opposite was true for nonelderly
households
Among the nonelderly, more spending on lower income
households than taxes paid by those households in 2006; the
opposite was true for higher income households