Tea and Ignorance
Friday, April 17th, 2009 by RLRFrom TruthDig
By Marie Cocco
There’s nothing like tax-filing season to remind Americans that the only things certain in life are death and taxes—or that few public outcries are considered more patriotic than grousing about paying up.
What’s an ornery tax filer to do? Have a tea party, of course.
With all the simplistic bombast that we’ve come to expect from partisans who are locked out of power and floundering with low public approval, conservative and Republican activists around the country have staged quite a number of these media events over the past few days, and already have begun organizing for more on July 4. The nation, they claim with straight—if angry—faces, is being strangled by high taxes, heavy-handed government and profligate spending. If only we could sweep away all this excess, we’d return to the shining prosperity we enjoyed … when?
Well, they don’t say.
There is little anyone can do about these rants except worry they will be believed by a wider public. So, on the theory that the truth may one day—some day—set us free, it is worth examining exactly what we’re all paying, and what for.
The nonpartisan Congressional Budget Office keeps track of this sort of thing. Just days ago, it released an updated analysis of the effective federal tax rate—that is, what individuals and businesses pay after they take exemptions, deductions, credits and so forth. And it turns out that the effective federal tax rate that households across the income spectrum pay is lower now than it was 30 years ago, with an average rate of 20.7 percent. That encompasses all federal taxes, including excise and payroll taxes.
The effective rate is now lower than it was during Ronald Reagan’s second term, lower than during George H.W. Bush’s term, and lower than it was during Bill Clinton’s tenure—which is a period most Americans remember pretty fondly as one of robust economic growth. By the time Clinton left office, the deficit had been eliminated and Congress was debating whether it would be beneficial to pay off every dollar of the public debt.
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