An interesting article from the Washington Post today on America’s tax rate:
As thousands of anti-tax protesters rallied across the nation yesterday and the president promised tax cuts for most, new data showed that the federal income tax burden is already hovering near its lowest level in three decades for all but the wealthiest Americans.
The nonpartisan Congressional Budget Office estimates that the average family forked over barely 9 percent of its earnings to the IRS in 2006, the most recent year for which information is available. The effective tax rate hit its all-time low in 2003 and has since crept up only slightly.
This highlights a big problem with taxes as a political issue. As much as we tend to think of taxes as an issue that directly affects every American, most people are completely ignorant about the concept of taxation. This is why you hear conservatism advocate balanced budgets and while passing tax cuts that increase the deficit. It explains why mainstream conservatives argue that our financial system will collapse if we don’t renew the trillion dollar tax cuts passed by Bush in 2003, or why they scream bloody murder because Obama wants to return the corporate tax rate to the level it was during the Clinton years. (36% to 39%)
The real bearing of economic satisfaction has always been the economy.
Good economy = happy people.
Bad economy = angry people