Tuesday, August 10, 2010

Who Really Pays the Taxes in the US

From Canada's perspective, American taxpayers are spoiled. They constantly complain about "high taxes" but have the lowest tax rates of the developed economies. Here's a graph showing taxes paid as a percentage of the GDP:

Click to Enlarge

The portion of taxes paid by corporations has steadily gone down. The portion paid through the "hidden" taxes of Social Security are the only ones that are rising. But Americans complain of being "overtaxed". Funny!

My view is that you get the government you pay for. The US taxpayers for 30 years have voted to "downsize" their government, so they now have infrastructure falling apart, scandals and economic fraud destroying the economy, growing disparity between those who do the work (the bottom 98% of society) and those who control things (the ultra-rich, the top 2%). You would think that Americans would notice that they are on a death spiral and want to pull out of it. But that is not clear given the rumblings of this years Congressional elections. It sounds like American's are pining for the "good old days" of George Bush with his wars, his big tax cuts for his rich buddies, his tax throwaways (like the infamous donut hole pharmacare bill), and his neglect (Katrina, 9/11 perigrinations, weed whacking on "the ranch" as the President who took the most vacations of any).

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