Why Americans Think the Tax Rate’s High, and Why They’re Wrong - NYTimes.com »
Together, all federal taxes equaled 14.4 percent of the nation’s economic output last year, the lowest level since 1950. Add state and local taxes, and the share nearly doubles, to about 27 percent, according to the Tax Policy Center in Washington — still lower than at almost any other point in the last 40 years. As the economy recovers and incomes rise, tax payments will increase somewhat. But they will not keep pace with projected spending, in the form of Medicare, Medicaid and Social Security. And total taxes at current rates would still make up a smaller share of the economy than in virtually any other rich country — not just European nations but also Australia, Canada, Israel and New Zealand.
