Shows government revenue including federal, state and local
governments as a percentage of total income for the U.S economy. It shows that
the role of government has grown substantially over the past century. In 1902
the government collected 7 percent of total income in recent years government
has collected about 30 percent. In other words as the economy’s income has
grown the government’s revenue from taxation has grown even more.
Compares the tax burden for several major countries as
measured by the central government’s tax revenue as a percentage of the nation’s burden is income. The USA is
in the middle of the pack. The U.S tax burden is low compared to many European countries but
it is high compared to many other nations around the world. Poor countries such
as India and Pakistan usually have relatively low tax burdens. This fact is
consistent with the evidence. As a nation’s gets richer the government
typically takes a larger share of income in taxes.
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