Benefit from the Government

Income levels are determined to a considerable extent by the government, which exerts an influence through social security and taxation. The traditional purchasing power tables are a reflection of this.
However, the influence of the government goes further; it is also responsible for public safety, education, health care, housing, cultural education and the mobility of citizens. This involves a great deal of money; in 1999, 48 billion euros were spent on these government services, hardly less than the total amount of social security benefits paid. Citizens see the benefit of their taxes when they make use of these services. This report treats this benefit from the government as part of household income. It considers a diversity of provisions such as housing benefit, student finance, funding for the performing arts, compulsory health insurance, home care services and exemption from local authority taxes. The central question is which incomes benefit the most, and whether these transfers reduce or increase income differentials.