U.S. tax burden at lowest level since '58

Source: USA Today

U.S. tax burden at lowest level since '58
By Dennis Cauchon, USA TODAYUpdated 35m ago

Americans are paying the smallest share of their income for taxes since 1958, a reflection of tax cuts and a weak economy, a USA TODAY analysis finds.

The total tax burden — for all federal, state and local taxes — dropped to 23.6% of income in the first quarter, according to Bureau of Economic Analysis data.

By contrast, individuals spent roughly 27% of income on taxes in the 1970s, 1980s and the 1990s — a rate that would mean $500 billion of extra taxes annually today, one-third of the estimated $1.5 trillion federal deficit this year.

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"We have a 1950s level of taxation and a 21st-century-sized government," says Robert Bixby, executive director of the Concord Coalition, a deficit-reduction advocacy group.

Read more: http://www.usatoday.com/money/perfi/taxes/2011-05-05-tax-cut-record-low_n.htm

It's a lot higher than that now.

We are acutely aware that the wealthy have a significantly lower tax burden. But I know that my tax burden, when I total all federal, state and local taxes, is much much higher than the 23.6%. But then again, I don't make all that much, and I am single with no dependents (except my expensive cat, and they just will not let me claim him). And I own a house.

Ending or reducing the deficit is not complicated. Tax those who have the money. Many of the richest among them live on taxpayer money anyway. Many of them are either in the business of government contracting -- work which could be more efficiently and cheaply done by civil servants -- or in the business of selling products and services to the government in some other manner.

You know what? I can't afford that.

Can't wait for the torch & rope parties to begin.

Group 1: Those wealthy enough to afford as many accountants and tax lawyers as they need, and the influence to lobby for whatever tax loopholes they want. These people pay the rate they want to pay.

Group 2: The large mass of people at the bottom of the chain, pay nothing in income taxes, most of the taxes this group pays are through sales/gas/excise taxes. These people pay the rate they can afford to pay, which is not much at all.

Group 3: Everyone else in the middle: you get fucked. Your actual tax burden, if you pay a normal rate of income tax as well as all other consumer taxes, can exceed 50% of your income. NOBODY is looking out for you so count on getting even more screwed in the future.