For every federal dollar spent on programs to help low-income families build assets, the federal government gave up – meaning they did not collect in taxes – $582 dollars through preferential tax rates, tax deductions, tax exemptions and tax credits that mostly benefit high-income families.

Do you think this sounds fair? Hardly.

A recent study by CFED “Return on Investment” found that federal asset building dollars largely benefit high-wealth families. The CFED study builds on their groundbreaking analysis from 2004 “Hidden in Plain Sight,” where they took account of who really benefited the most from all of the asset-building programs and dollars in the federal budget. They found that the lion’s share of $335 billion dollars in the federal budge for 2003, benefited mostly those families in the top 1% of income earners.

In the new report, CFED found yet again the same lopsided benefit; specifically, the report notes:

Of the three largest asset-building policies — the mortgage interest deduction, the property tax deduction, and preferential rates on capital gains and dividends — over 45% of the subsidies go to the top 1% households, whose average income exceed $1.25 million. The top fifth of taxpayers (those with incomes greater than $80,000) receive the vast bulk (88.7%) of asset-building benefits. In contrast, the rest of the population share 11.6% of the tax benefits, and the lowest 60% of households get a bit less than 3% of the benefits.

To read the report, click here.