|Real Tax Rates|
|Monday, 05 September 2016 15:11|
On another forum, a person was decrying the tax cuts we've had, and how they have created the increase in debt since 2000. Is that actually the case? Are tax rates down, and thus our debt is up? Well, let's look at the historical record and see - how has tax revenue changed over time, and how has the deficit grown?
In reality, we haven't had tax cuts, either. In 2016, Federal, State, and Local Governments will combine to raise $23,523 per US citizen. In 1990, that revenue was $7751. In 1957, that revenue was $716 (and that was also the last year we ran an actual surplus, we did not add to the debt). When you adjust for inflation you'll find the various Governments are pulling about 3 times the tax revenue now, as they did in 1957, and close to double what they did in 1990, on a per-capita basis.
What happened was that tax rates were monkeyed with, but exemptions that used to be allowed were dropped or heavily modified, and the result was a massive increase in the effective tax rate - witnessed by the massive rise in inflation-adjusted revenues per capita. The Governments today are fed 3 times what they had in 1957, and even so they combine to add over $1.5 trillion in debt just this year (don't let the reports fool you; the Federal Government is running a $1.3 trillion deficit this year, based upon the increase in the national debt). So even with 3 times the amount of funds - spending has skyrocketed even faster, building up massive debts.
There have been no effective tax cuts - there have been effective tax increases. That's the sad reality - that so many buy into the claims of tax cuts, while at the same time believing our Federal Government is only running a deficit 1/4 of what it actually is.
|Last Updated on Monday, 19 September 2016 00:08|