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Why compare that actual cost to GDP? Compare it to federal tax revenue. It's about 8% of federal tax revenue. There is not a lot of room for the federal governm
by cylinder 11y ago
Why compare that actual cost to GDP? Compare it to federal tax revenue. It's about 8% of federal tax revenue. There is not a lot of room for the federal government to increase revenue as total taxes (incl state and local, sales, payroll, property, etc) are not low by any means in the US
- dragonwriter 11y ago> Why compare that actual cost to GDP? Compare it to federal tax revenue. Because we are talking about determinants of the health of the economy, not determinants of the health of government finance. > There is not a lot of room for the federal government to increase revenue as total taxes (incl state and local, sales, payroll, property, etc) are not low by any means in the US That's not particularly true; the US is pretty close to the bottom of total tax revenue to GDP ratio among OECD countries; there is plenty of room to increase tax revenue. http://www.oecd.org/ctp/tax-policy/revenue-statistics-ratio-change-latest-years.htm http://www.oecd.org/ctp/tax-policy/revenue-statistics-ratio-...