Average tax burden at 40 year low

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.

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.

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

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?

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

quite the contrary, the truth is beautiful. only cowards obfuscate and divide. last i checked, ammo's still scarce at wal mart. i'll let that be my redneck barometer of fear.

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

I'm paying more at the local level under republican leadership for everything and less at the Federal level.

I'm paying more at the local level under republican leadership for everything and less at the Federal level.

I am not at all surprised that we are all paying more taxes than usual locally. Municipalities have had difficulties over the past five years or so and when they run into trouble, they raise taxes regardless of which party has control. City of Atlanta has been Democratically controlled for a few decades and your eyes would pop out of your heads if you saw what I pay in taxes.

One of the things I love about Florida. Living in Cali was just punishing. I try not to think about it and enjoy a good snicker every time I read about Cali's budget woes.

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?

He left it out because the Republicans did away with it. Remember the "DEATH TAX!" sounds ominous doesn't it? Well it applied to Estates in excess of 1 million dollars and it no longer exists.

god told me to say that

You pay more in state taxes than you do federal taxes? I think if you total up your federal income tax, FICA and medicare, your percentage of the corporate tax on products you buy, the gas tax, etc.. Florida taxes might look a little better.

I am not at all surprised that we are all paying more taxes than usual locally. Municipalities have had difficulties over the past five years or so and when they run into trouble, they raise taxes regardless of which party has control. City of Atlanta has been Democratically controlled for a few decades and your eyes would pop out of your heads if you saw what I pay in taxes.

Nah, that one was all you.

I meant to say the amounts have gone up locally for everything for me. All my local taxes have gone up this last year, federal taxes are lower for me this year.