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Your first chart actually shows that federal tax as a % of GDP has remained essentially unchanged since the 1940s, despite the significant changes in tax rates
by gamblor956 2y ago
Your first chart actually shows that federal tax as a % of GDP has remained essentially unchanged since the 1940s, despite the significant changes in tax rates since then. What has changed in the amount of spending as a % of GDP.
- s1artibartfast 2y agoDepends on where you cut the comparison. In 1930 they were 4.4% of GDP In 1940 they were 6.3% of GDP In 2023 they were 16.2% of GDP. Federal spending has indeed Grown faster than receipts, but I dont want to muddy the water with debt spending and inflationary effects, and dont have to because Taxes per GDP is fractional and accounts for inflation. The main point I want to drive home is the change in total tax amount, controlling for inflation. People tend to focus on percent tax burden and over look the total tax payment in inflation adjusted real dollars.
- gamblor956 2y agoNo, my point was that your cited data source shows that, as a % of GDP, income taxes are unchanged since the 1940s. This is because when you look at the taxes actually paid, it evens out due to deductions, credits, changes to the brackets, etc. It's only if you look at statutory progressive rates that it appears that federal income taxes appear to be a larger % of US GDP.