Taxes In US Rocket Over Last Century
February 21, 2014 Taxation in USA
WASHINGTON D.C. – Over the last century US taxpayers have been paying an increasing levels of taxes, and the government’s spiraling expenses mean that these tax payments could be hiked even further in the near future.
On February 20th the independent think tank the Tax Foundation released a new report showing that since 1900 the level of taxes collected by the US government has grown significantly, while public expenditure has increased at an even faster right, and there are strong signs that expenditure and collections will go up even further in the near future.
The researchers of the Tax Foundation found that in 1900 the total amount of taxes collected by the federal government was equivalent to approximately 3 percent of the national GDP, while in 2012 the level is 5.5 times higher, reaching 16.5 percent of the GDP.
The federal government’s expenditures have grown even faster than collections, coming up to 24 percent of GDP in 2012, from approximately 2.7 percent in 1900.
The author of the report, Michael Shuyler, also indicated that in the near future the level of expenditures will grow even larger, as the government has already pledged significant amounts of funds to cover the costs of the Patient Protection and Affordable Care Act, rising social security costs, Medicare for senior citizens, and boosts to civil worker pension benefits.
As a result of the increasing outlays, it may be necessary for the federal government to collect an even greater amount of taxes in order to fund all of its slated expenses.
Photo by: Emilian Robert Vicol