There’s no special reason for posting this except that taxes and tax cuts are in the news:
For more than 60 years, total federal taxes have averaged about 17 percent of GDP.¹ Tax receipts go up and down slightly, mostly because of tax legislation and economic cycles, but always return pretty quickly to their long-term average. Spending has averaged about 20 percent of GDP ever since the Reagan era. It also goes up and down a bit thanks to recessions and expansions, but always returns to around 20 percent.
Bottom line: Taxes have not skyrocketed. Spending has not skyrocketed. Corporations are not burdened with the highest tax rate on the planet.
¹Of that total, personal income taxes have been a steady 8 percent of GDP. Corporate taxes have declined from 5 percent of GDP to 2 percent.
