Posted by: arnegrim | February 7, 2011

2011 low federal taxes?

“Taxes too high?

Actually, as a share of the nation’s economy, Uncle Sam’s take this year will be the lowest since 1950, when the Korean War was just getting under way.”

Seriously?!?  When is measuring taxes as a percentage of the GDP a reasonable measure?  Is the assumption that the government must grow as fast as the economy a valid one?  It certainly doesn’t shrink when the economy does… and in fact, according to the Obama admin, it should grow during a down economy… in order to stimulate said economy.

In addition, the GDP includes fees charged by the government (vehicle registration as an example)… and the tax revenue does not take into account the number of unemployed people who are not paying income taxes.  So on one hand the GDP is skewed to a higher number because it includes government services that generate ‘income’ while on the other the tax revenue is skewed to a lower number due to high unemployment.


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