Thursday, May 13, 2010
Contrary to how it feels for many Americans, taxes are not abnormally high these days. Data from the Department of Commerce’s Bureau of Economic Analysis shows the country in 2009 paid the lowest rate of taxes since 1950. Whereas Americans have historically shelled out about 12% of their income for federal, state and local taxes, last year they paid 9.2%.
“The idea that taxes are high right now is pretty much nuts,” Michael Ettlinger, head of economic policy at the left-leaning Center for American Progress, told USA Today.
Conservatives, like Tea Party-organizer Adam Brandon of FreedomWorks, say the trouble is that government spending has gotten out of hand, forcing the U.S. to borrow too much from overseas, which will result in higher taxes down the road.
Americans paid fewer taxes in 2009 for a variety of reasons. Some of it was because the economic stimulus plan imposed new tax cuts, in addition to earlier tax breaks passed during the Clinton and Bush administrations. Also, a drop in consumer spending accounted for a reduction in sales tax revenues.
Nevertheless, 48% of respondents to a Gallup survey last month said taxes were too high, while 45% said they were “about right.”
-Noel Brinkerhoff
Tax Bills in 2009 at Lowest Level since 1950 (by Dennis Cauchon, USA Today)
Taxes at Lowest Level in 59 Years (by Michael Perkins)
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