* Taxes are excessive and out of control in the US
* Most taxes just end up in lawmaker's buddy's pockets
* Programs in the US get created, and never garbage collected
* Literally every business is doing this
Really the only thing that upsets me is that these tax havens aren't accessible to common people like me, as I'm not blood or marriage related to a US Senator or Congressional Rep.
Edit: https://www.concordcoalition.org/wp-content/uploads/2024/03/...
Given that the income tax didn't exist in the US before 1861, and even when it was introduced it was 3%, and in 1913 the highest bracket was 7% (on income over $11 million in todays's money) and the lowest was 1%, I seriously doubt that.
https://www.taxpolicycenter.org/briefing-book/how-do-federal...
For our contemporary age, they are at an all time low.
https://dictionary.cambridge.org/dictionary/english/historic...
Consider yourself enlightened.
the reality is that Americans pay 10X taxes than in 1930. Surely government services have growth since then as well, but I question if the public is getting 10X the value.
Tax as a percent of the economy has gone through the roof, both as a percent of GDP, and as inflation adjusted dollars. If you compare to a benchmark like the 1940s, tax% of GDP has more than doubled[1], and GDP has increased ~4.5x[2]. This means someone today pays about 10X the taxes (controlling for for inflation!). State and local taxes have grown even faster than federal taxes.[3]
Put another way. Taxes/Real GDP has gone from 2% o
Federal tax/GDP: https://fred.stlouisfed.org/graph/?g=ockN
Real GDP: https://fred.stlouisfed.org/series/A939RX0Q048SBEA
State +local/Real GDP:https://fred.stlouisfed.org/series/W070RC1Q027SBEA#0
In 1930 they were 4.4% of GDP
In 1940 they were 6.3% of GDP
In 2023 they were 16.2% of GDP.
Federal spending has indeed Grown faster than receipts, but I dont want to muddy the water with debt spending and inflationary effects, and dont have to because Taxes per GDP is fractional and accounts for inflation.
The main point I want to drive home is the change in total tax amount, controlling for inflation. People tend to focus on percent tax burden and over look the total tax payment in inflation adjusted real dollars.
This is because when you look at the taxes actually paid, it evens out due to deductions, credits, changes to the brackets, etc.
It's only if you look at statutory progressive rates that it appears that federal income taxes appear to be a larger % of US GDP.
That is demonstrably false.
In fact garbage collection is so common I'd bet I can just stand here and do nothing for 5 minutes until my brain finds an intersection with my own circumstances...
Found it...
Look up the used PHEV federal tax credit. While you're at it, look at the tax credit for new electric and PHEV vehicles. That one even has a little built-in ramp to decrease the incentive over time.
It's as if the government has somehow gained practical knowledge and experience over time with various garbage collection routines...