In 1955, the Federal budget, in constant dollars adjusted for inflation, was one-sixth of the 2010 budget.
The tax revenues for 2009, again in constant dollars, would have paid for the 1955 budget two and a half times over.
The population in 1955 was about 166 million. The population today is about 300 million. A factor of about 1.8.
There is no way to look at these numbers and come to the conclusion that our fiscal problem is that we are not taxed enough.
Incidentally, the average tax rate in 1955 for the median income, including income and payroll taxes, was 7.35 percent. In 2008, it was 13.73 percent. Much of that increase is from payroll taxes, which were 4 percent in 1955 (employee plus employer contributions) and are 15.3 percent now.
The top bracket was indeed high--between 87 and 90 percent--but the bracket started at $400,000, which adjusted for inflation would be over $3 million now.
Budget source
Current Events » in reply to re: So let me get this straight...
Taxes
The whole thread (34 posts)
- Who's paying the Federal income taxes
- The Rich STILL Pay at a Lower Rate than the Rest of Us.
- My uncle makes $144,000.00 gross/year...
- Luke 12:48
- The right way to look at this....
- Oh what tangled webs we weave...
- Please cite the source of reproduced material. (n/t)