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Discussion: (7 comments)

  1. Japan, Germany, France, United Kingdom, Italy, Canada, and Australia?

    backward countries, every one of them…

  2. Can you say, Phil Mickelson?

  3. I think that this is might be true if you look at only taxes, but not if you look at spending. Last time I checked, the Feds were spending about 25% of GNP and the state/locals spent another 16%, for a total of 41%.

    The only way the 24% is true is if you exclude 17% of gvt expenditures because they come from borrowing rather than taxes.

    1. Steven Hales

      Net borrowing (S,L&F) is less than 10% of GDP at $1.2~ trillion. Total government spending is 35% of GDP or $5.5~ trillion.

  4. John Peterson

    Using 2010 distorts the picture. Tax receipts fall faster than GDP in recessions. Normally, federal receipts are over 19% of GDP, and S&L receipts are about 9%. It is reasonable to project that total government receipts will rise to about 28% of GDP under current law as the economy recovers up to its long term trend line (or potential GDP). Tax law does not have to change to get from 2010’s 24.8% to roughly 28% sometime in the next 5 years or so.

  5. Thomas Sullivan

    According to total federal, state and local revenue in 2012 was $5.1 trillion. As a share of a GDP of $15.6 trillion, that’s 32.7%. Hello, Europe. Oh, and the federal government borrowed another 7.7% of GDP. Or a total of 40.4% of GDP.

    1. Steven Hales

      Total receipts according to BEA are about $4.3 trillion while spending is about $5.5 trillion. I think Cantrell double counts federal transfers to the states.

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