Monday, March 8, 2010

Work for 224 Days just to pay Federal Spending

When I was younger and still in the working class, I remember reading that we worked until sometime in early May each year just to pay for government spending. Last year (2009) that
figure rose to 224 days, or August 12, just to pay for federal, state and local governments. That figure is a full 26 days more than the previous year!

That's a whopping 61.34% of national income. Can you imagine what it will be next year and years following, thanks to the Stimulus Package (
ARRA), TARP, and other new federal spending? Federal spending has reached a record 28.5% of our GDP (Gross Domestic Product), which is often called GDI (Gross Domestic Income). It is the measured value of all goods and services produced within the borders of a country and is generally used to measure the standard of living.

There's an interesting chart here on tax bites. We pay an average of over 46% tax on cable services (TV and internet) and cell phones, and nearly 52% tax on telephone land lines and gasoline. The so-called "sin" taxes are 56% on beer, 79.6% on distilled spirits and 86.71% on cigarettes.

I bet those so-called "sin" items make up a large percentage of what little we actually still make in this country.

1 comment:

  1. Thanks to Bush's tax cuts on the corporate and private rich, a trillion $+ war based on outright lies, and reduced regulations allowing our biggest and most profitable corporations to flee taxes by basing the company in a tax haven off-shore. But suddenly there's concern about the deficit--you know, the one that didn't exist when Bush took office. Funny how people are just now figuring out that we have to spend no more than we bring in, but were silent over the previous eight years. Sheesh!


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