Taxes fall to lowest levels since 1950

By Zach W On May 13, 2010 · 3 Comments · In News

Despite the screeching of some on the right about high taxes since President Obama took office, a new report by the Bureau of Economic Analysis has found the tax rate for Americans was at its lowest level since 1950:

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.

Kinda debunks the talking points the folks from the Tea Party movement are spewing about being “Taxed Enough Already.”

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3 Responses to Taxes fall to lowest levels since 1950

Locke says:

May 13, 2010 at 9:08 am

What a pathetically one-sided article. They list 3 reasons – glossing over one factor and totally ignoring another. Total taxes are down because incomes are down. Tax revenues always fall in a recession – most workers (well at least private sector) have had pay freezes for a couple of years now (as inflation has continued on). But most importantly unemployment rates in 2009 were at 30 year highs. And the U6 which is the most comprehensive & accurate measure was over 17% for a good chunk of last year. When more than 1 out of 6 people are unemployed taxes are going to be lower on average.

I did get a kick out of this:

This tax drop has boosted consumer spending and the economy, which grew at a 3.2% annual rate in the first quarter.

Shocking, just shocking. Lowering taxes is good for the economy. I think I’ve heard that somewhere before.

Finally,

Kinda debunks the talking points the folks from the Tea Party movement are spewing about being “Taxed Enough Already.”

I’m constantly amazed at how poorly you understand them & their issues. It was never about taxes being too high in a vacuum – there’s a whole world of context you’re ignoring. It has always been in terms of excessive spending – and what really got the movement started was billions spent on bailouts of multi-billion dollar, multi-national corporations with said tax dollars.

“The idea that taxes are high right now is pretty much nuts,” says Michael Ettlinger, head of economic policy at the liberal Center for American Progress. The real problem is spending,counters Adam Brandon of FreedomWorks, which organizes Tea Party groups. “The money we borrow is going to be paid back through taxation in the future,” he says.

And there you have it. A succinct argument defining the problem clearly. Versus, “You guys are nuts.”
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- forgotmyscreenname says:
  
  May 13, 2010 at 4:20 pm
  
  They might as well run a story telling us 10% more Americans say they have more free time to relax. Sounds pretty good until you find out the reason for that is because they’re unemployed. Whoops.
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Ed Heinzelman says:

May 13, 2010 at 1:31 pm

“Lowering taxes is good for the economy.”

Never has been an issue for me…the issue is which part of the population should have their taxes lowered? Those who have little or no discretionary income or those who wouldn’t noticably change their spending habits.
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