“Every year, the federal government spends billions of dollars on these tax programs primarily to support the highest-income households that need support the least,” said Ezra Levin, associate director of government affairs for the group, which is based in Washington.
Relentless pressure in recent years, particularly by conservatives, to reduce program spending has meant that the tax code has increasingly become the primary driver of social policy when it comes to education, retirement and housing.
The amount of spending in those areas channeled through taxes is on the rise, topping $620 billion in 2014, up from $540 billion in 2013, according to Mr. Levin’s analysis. By comparison, federal discretionary spending by 14 of the 15 cabinet agencies, including housing, transportation, labor, commerce, education, Treasury and health and human services totaled $464 billion.
“This is not a liberal position or a conservative position,” he said.
Those at the tippy-top of the income scale — the top 0.1 percent, with an average annual income of $7.6 million — received an average of $33,391 in federal tax payouts analyzed by the group. Those in the bottom 60 percent, who earn less than $65,000, got less than $1,000 on average, altogether about 12 percent of the billions handed out.
A 2013 report from the Congressional Budget Office that looked at the 10 largest tax subsidies, worth a total of $900 billion, found that more than half went to households in the top fifth on the income scale.
