Average tax burden at 40 year low

[Bob]

Average U.S. Tax Burden at 40-Year Low I finished up my tax return this weekend. I did it myself, using Turbo Tax, and ran it by our new accountant (because I left BusinessWeek in 2009 and started a new business, the return is more complicated than in previous years).

Now that?s done, I can take a look at the bigger tax picture. Just for fun, I calculated total taxes paid by Americans as a share of national income. Total taxes includes federal, state, and local income taxes, corporate income taxes, property taxes, sales taxes, social security and medicare taxes, and every other kind of tax (except for the estate tax).The top red line tracks total taxes as a share of national income?in effect, the average tax burden for the whole economy. In the fourth quarter of 2009, the average tax burden for the whole economy was 27.5%?the lowest since 1966. That shows the combined effects of the Great Recession and the tax cuts. If we leave out social insurance taxes, the trend is even stronger?the average tax burden, omitting social insurance taxes, is the lowest in the post-war era.

These calculations are similar to the ones done by the Tax Foundation in its calculation of Tax Freedom Day, the day where Americans have ?earned enough money to pay this year?s tax obligations at the federal, state and local levels?. Take a look at the Tax Foundation?s chart.....the truth will crush you, teabaggers. pick another smokescreen to hide your fear of having a black president.

 

[30A Skunkape]

Average U.S. Tax Burden at 40-Year Low I finished up my tax return this weekend. I did it myself, using Turbo Tax, and ran it by our new accountant (because I left BusinessWeek in 2009 and started a new business, the return is more complicated than in previous years).

Now that?s done, I can take a look at the bigger tax picture. Just for fun, I calculated total taxes paid by Americans as a share of national income. Total taxes includes federal, state, and local income taxes, corporate income taxes, property taxes, sales taxes, social security and medicare taxes, and every other kind of tax (except for the estate tax).The top red line tracks total taxes as a share of national income?in effect, the average tax burden for the whole economy. In the fourth quarter of 2009, the average tax burden for the whole economy was 27.5%?the lowest since 1966. That shows the combined effects of the Great Recession and the tax cuts. If we leave out social insurance taxes, the trend is even stronger?the average tax burden, omitting social insurance taxes, is the lowest in the post-war era.

These calculations are similar to the ones done by the Tax Foundation in its calculation of Tax Freedom Day, the day where Americans have ?earned enough money to pay this year?s tax obligations at the federal, state and local levels?. Take a look at the Tax Foundation?s chart.....the truth will crush you, teabaggers. pick another smokescreen to hide your fear of having a black president.

I'm not speaking as a teabagger, but there is an interesting 'related story' link under yours. Income Taxes Headed in the Wrong Direction

We will have to see what happens April 15, 2011.

 

[30ashopper]

Average U.S. Tax Burden at 40-Year Low I finished up my tax return this weekend. I did it myself, using Turbo Tax, and ran it by our new accountant (because I left BusinessWeek in 2009 and started a new business, the return is more complicated than in previous years).

Now that’s done, I can take a look at the bigger tax picture. Just for fun, I calculated total taxes paid by Americans as a share of national income. Total taxes includes federal, state, and local income taxes, corporate income taxes, property taxes, sales taxes, social security and medicare taxes, and every other kind of tax (except for the estate tax).The top red line tracks total taxes as a share of national income–in effect, the average tax burden for the whole economy. In the fourth quarter of 2009, the average tax burden for the whole economy was 27.5%–the lowest since 1966. That shows the combined effects of the Great Recession and the tax cuts. If we leave out social insurance taxes, the trend is even stronger–the average tax burden, omitting social insurance taxes, is the lowest in the post-war era.

These calculations are similar to the ones done by the Tax Foundation in its calculation of Tax Freedom Day, the day where Americans have ”earned enough money to pay this year’s tax obligations at the federal, state and local levels”. Take a look at the Tax Foundation’s chart.....the truth will crush you, teabaggers. pick another smokescreen to hide your fear of having a black president.

Bob, your post started out sounding like an interesting topic worthy of discussion, then you totally derailed it with typcial Bob'esk ugliness.

 

[scooterbug44]

I was quite surprised by my tax results - figured I owed the government money and instead got a good sized refund.

 

[Will B]

Bob, your post started out sounding like an interesting topic worthy of discussion, then you totally derailed it with typcial Bob'esk ugliness.

Agreed...
I was about to jump in the pool to play until I got to the last line. No need for that, here...

 

[Em]

Wow. That is one hefty last sentence, Bob. You state that YOU calculated this. How did you calculate such things?

Also, did you happen to calculate the tax burden by the people who actually pay taxes?

Why did you leave out Estate Taxes?

 

[LuciferSam]

Bob, your post started out sounding like an interesting topic worthy of discussion, then you totally derailed it with typcial Bob'esk ugliness.

That may have been a little abrupt (funny as hell too), but I can certainly understand calling the baggers' motives into question.

 

[AlphaCrab]

"When Fascism finally does come to the proud shores of America, it will be wrapped in the American flag, carrying the Bible, and a box of Tetley."

--A Crab.

 

[Bob]

god told me to say that

 

[Bob]

Wow. That is one hefty last sentence, Bob. You state that YOU calculated this. How did you calculate such things?

Also, did you happen to calculate the tax burden by the people who actually pay taxes?

Why did you leave out Estate Taxes?

it's michael mandel's article. i found it interesting. the only thing being calculated by me is how darn angry everyone seems to be over non-issues. as i said, strip away the smokescreen, and the real culprit is cultural, racial fearmongering.