May 19, 2012

Tax Revenues and Deficits

The graph above from Wikapedia shows the Tax Revenues of a number of western countries. The US percent is the lowest on this graph.

Wikapedia Article


"Americans are paying the smallest share of their income for taxes since 1958, a reflection of tax cuts and a weak economy, a USA TODAY analysis finds."

"The total tax burden — for all federal, state and local taxes — dropped to 23.6% of income in the first quarter, according to Bureau of Economic Analysis data."

"By contrast, individuals spent roughly 27% of income on taxes in the 1970s, 1980s and the 1990s — a rate that would mean $500 billion of extra taxes annually today, one-third of the estimated $1.5 trillion federal deficit this year."


The United States must create more rapid growth. But once that growth is achieved we have to raise taxes to lower our debt.

I fully support efforts to lower governmental costs and increase efficiency. But cuts alone will not reduce our enormous and growing deficit. We have to have more revenue - ie taxes.