formerexpat
Senior Member
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Post by formerexpat on Aug 8, 2011 21:32:42 GMT -5
Governments at all levels are expected to have revenues of approximately $4.5 trillion this year [29.57% of GDP]. Governments are expected to spend approximately $6.2 trillion this year [40.85%]. That got me wondering the tax rate that would be required to cover all government spending. Whether the form of revenue is collected in fees, social insurance "taxes" or taxes on businesses, the taxes are entirely paid by the citizens of the US [and those visitors that pay various state sales taxes]. By no means is this comprehensive, just a back of the envelope calculation that is materially correct - and scary. I'm using AGI from 2008, because it's easily available. If anyone cares to bitch about the mismatch - find the information and provide the math yourself here instead of bitching. Total AGI = $8.427Tr, tax rate needed on AGI to cover expenses = 73.1%. Total AGI of top 25% = $5.678Tr, tax rate needed on AGI to cover expenses = 108.5%. Yes, that is correct - you could confiscate the top 25% of tax filers entire AGI and still not cover total government expenditures. Total AGI of top 50% = $7,352Tr, tax rate needed on AGI to cover expenses = 83.8%. These are all percentages on pre-high unemployment income. We don't have a revenue problem, we have a spending problem. www.taxfoundation.org/news/show/250.htmlwww.usgovernmentrevenue.com/#usgs302awww.usgovernmentspending.com/index.php |
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mmhmm
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It's a great pity the right of free speech isn't based on the obligation to say something sensible.
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Post by mmhmm on Aug 8, 2011 21:37:25 GMT -5
We have both a spending problem and a revenue problem, IMO.
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❤ mollymouser ❤
Senior Associate
Sarcasm is my Superpower
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Post by ❤ mollymouser ❤ on Aug 8, 2011 22:19:56 GMT -5
We have both a spending problem and a revenue problem, IMO.  |
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Virgil Showlion
Distinguished Associate
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[b]leones potest resistere[/b]
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Post by Virgil Showlion on Aug 8, 2011 22:28:14 GMT -5
again
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Aug 8, 2011 22:34:39 GMT -5
We have both a spending problem and a revenue problem, IMO. We do have a revenue problem. But we do NOT have a "don't tax enough" problem unless you count the 47% of US households who have a $0 Federal Income Tax liability. The revenue problem will not be solved by raising taxes. It will be solved by creating more tax payers. That will happen when we cut spending. |
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formerexpat
Senior Member
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Post by formerexpat on Aug 8, 2011 23:19:31 GMT -5
- since everyone else wants to use the emoticon.
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