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A tax impact from Grandpa’s day

Released: 
September 11, 2012

Federal tax revenue as a percentage of gross domestic product is at its lowest level in more than 60 years.

Big spending is one reason for record deficits. Here’s another: federal tax revenue as a percentage of gross domestic product is at its lowest level since 1950, more than 60 years ago. In 2010 federal tax revenue came to 15.1 percent of GDP. In 1950 it was 14.4 percent. The postwar average has been 17.9 percent.

Click to open today’s infographic for more detail. Hit “What Do Others Say?” for views on where tax rates should be – and add your own to today’s discussion thread.

Sources: 
The White House, Office of Management and Budget: “Historical Tables, Table 1.2"
Congressional Budget Office testimony: “Trends in Federal Tax Revenues and Rates”
Congressional Budget Office: “The Distribution of Household Income and Federal Taxes, 2008 and 2009”
What Do Others Say: 
Journal of Economic Perspectives: “How progressive is the US federal tax system”
Wall Street Journal: “For most, tax rates hit lows in 2009”
Politifact: “Jim DeMint says federal government has more revenue coming in than we ever have”
Heritage Foundation: “Tax revenues return to historical average”
New York Times: “Are taxes in the US high or low?”
Center on Budget and Policy Priorities: “Top 10 tax charts”
The Economist infographic: “Tax returns”
Organization for Economic Cooperation and Development: “US has third lowest tax revenue of OECD nations as a percentage of GDP”
Center for American Progress: “10 charts that prove the U.S. is a low tax country”
Related Video: 
Bloomberg video: “Who’s not paying federal income taxes?”
Colbert Report: “Death and taxes”