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That's not true when you factor in payroll taxes, local taxes, and state taxes: http://gregmankiw.blogspot.com/2007/10/personal-taxes-as-percent-of-gdp.html ht
by gravitycop 18y ago
That's not true when you factor in payroll taxes, local taxes, and state taxes:
http://gregmankiw.blogspot.com/2007/10/personal-taxes-as-percent-of-gdp.html http://gregmankiw.blogspot.com/2007/10/personal-taxes-as-per...
The boxed note in that graph says:
Most of the total "personal current taxes" (85% of it) is federal income tax. The remainder is state and local.
- bokonist 18y agoGood catch. The increase in taxes is actually greater than shown in the graph, since payroll taxes have increased enormously.
- Retric 18y agoThat graph is broken: http://www.usgovernmentspending.com/us_20th_century_chart.html http://www.usgovernmentspending.com/us_20th_century_chart.ht... If government is spending 40% of the GDP then taxes are around 40% of the GDP.
- redrobot5050 18y agoUnless the government was to engage in 'deficit spending' -- e.g. spending money it doesn't have by seeking loans from foreign countries. Oh course, that would never happen. :)
- Retric 18y agoOur deficit is significant but our 13.84 Trillion GDP means deficit spending of 1/2 Trillion a year is less than 5%. His graph placed taxes around 12% of GDP which is just so far from the truth that it's almost meaningless.