Wednesday, May 16, 2012

Americans Pay More in Taxes than for Food, Clothing, and Shelter Combined

In 2012, Americans will pay approximately $4.041 trillion in taxes, which is $152 billion, or 3.9%, more than they will spend on housing, food, and clothing. ... Between 1929 and the early 1980s, aggregate tax collections were less than total expenditures on housing, food, and clothing. From 1929 to 1980, tax liabilities grew from $10 billion to $751 billion, while expenditures on housing, food, and clothing grew from $41.6 billion to $775.7 billion. In 1982, total tax collections exceeded expenditures on those items. The gap between tax collections and expenditures on essential goods reached a maximum in 2000, when Americans gave 19% more to the government than they spent on these items. The growth in tax collections has halted due to economic contractions, such as the collapse of the "dot-com bubble" in 2001 and the 2007-2009 financial crisis.

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