The Rich Benefit the Most From Tax Breaks Designed to Help People Build Wealth
Most of the government money spent to encourage savings went to the highest-earning Americans
A 15,000 square foot custom built home in Belvedere, California, U.S.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
The federal government spent $384 billion in 2013 on tax incentives that encourage savings, linked mainly to home ownership and retirement plans. Most of that money went to the rich.
The highest-earning fifth of U.S. taxpayers got about two-thirds of the tax refunds and exemptions on things like mortgage interest and property taxes in the current U.S. tax code, while the bottom fifth received less than 1 percent, a report by the Urban Institute shows. Households with less income have less to tuck away for a rainy day and often can't afford to buy a home, so they are less able to take advantage of these tax breaks.