The Bulletpoint Blog

Who pays for government?

The image below shows the relationship over time of the various forms of taxes to the government. As you can see, although individual income taxes have remained relatively stable at around 45% of total income to the government, social insurance taxes (medicare and SS) have increased dramatically. So what kind of taxation has decreased to allow for such a shift to workers? Corporate income taxes, of course.

Types of tax as a share of total revenue

It should also be noted that this chart does not include the effects of elimination of Capital Gains and estate taxation. Both of which will shift the burden off of individual income tax and further onto workers.

• There's only one kind of entity taxed in our society - workers.
• Corporate taxes have dropped while Social Security and Medicare taxes have increased.
• A drop in social welfare taxes would ordinarily result from the baby boomers reaching retirement.
• An increase in general fund expenditures would occur, a result from the redemption of the boomers savings bonds to pay for their retirement.
• The real impetus for SS reform is a desire to keep the burden of society on the backs of workers and relieve capital of the need to repay its debt.

posted by Lumberjack @ 5:05 PM