Thursday, November 29, 2007

If Health Care is Unaffordable, What About Taxes, Food, and Housing? 

A table of family consumption going back to 1917

By Linda Gorman

As Sarah Brodsky pointed out in an earlier post, Families USA and other leftie groups are trying hard to convince people that health care is “unaffordable” for anyone who has expenditures in a year that exceed 10 percent of his income. Unless household income is above the 90th percentile, this basically means that when the orthodontist sends his bill, parents go directly to the poorhouse.

Well, if 10 percent is the affordability criterion, where is the intense concern about unaffordable transportation? As the table shows, it ate up 17.6 percent of after-tax 2006 consumer expenditures. Or unaffordable housing, which was 33.8 percent of expenditures? And, of course, there’s unaffordable food, which gobbled up 12.6 percent of expenditures. Not to mention entertainment, to which hard pressed American households directed 4.9 percent of expenditures.

Of course none of this says anything about what may be the largest of all family budget problems--taxes. The average American family pays about 33% of its income in taxes.

Paraphrasing Sarah, where is the Families USA campaign to lift that burden?

 

Shares of family consumption (for an urban family with one wage earner) using actual expenditures, in percent.

Component

1917-19

1950

1960-61

1972-73

2006

Food

41.1

32.5

26.0

22.6

12.6

Housing

26.8

26.0

29.2

29.3

33.8

Transportation

3.1

13.8

15.1

24.1

17.6

Clothing

17.6

11.6

10.3

8.4

3.9

Health care

4.7

5.1

6.6

4.7

5.7

Other

6.7

11.0

12.8

10.9

26.4

SOURCE: Eva Jacobs and Stephanie Shipp, “How family spending has changed in the U.S.,” Monthly Labor Review, March 1990, pp. 20-27 cited in David S. Johnson, John M. Rogers and Lucilla Tan. May 2001. “A Century of Family Budgets in the United States,” Monthly Labor Review, online PDF edition  (accessed November 13, 2005), p.32. The 2006 entry was calculated by the author using the Consumer Expenditure Survey.

 



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