U.S. Tax Bills Lowest Since Truman
May 11, 2010
From Dennis Cauchon in Tuesday's USA Today:
Amid complaints about high taxes and calls for a smaller government, Americans paid their lowest level of taxes last year since Harry Truman's presidency, a USA TODAY analysis of federal data found.
Some conservative political movements such as the "Tea Party" have criticized federal spending as being out of control. While spending is up, taxes have fallen to exceptionally low levels.
Federal, state and local taxes — including income, property, sales and other taxes — consumed 9.2% of all personal income in 2009, the lowest rate since 1950, the Bureau of Economic Analysis reports. That rate is far below the historic average of 12% for the last half-century. The overall tax burden hit bottom in December at 8.8.% of income before rising slightly in the first three months of 2010.
You read that right: despite the protests from anti-government conservatives and Tea Partiers shouting about high taxes, the tax rate in 2009 was lower than it has been since 1950. Michael Ettlinger, head of economic policy at the Center for American Progress, sums it up nicely:
"The idea that taxes are high right now is pretty much nuts."
