If you talk with just about any Republican, or any member of the Tea Party, taxes are too high. And for many of these people, there is no problem faced in the US that can’t be solved by cutting taxes.
But, according to USA Today, by one measure, taxes are lower today than they were in the 1950s and 2011 makrs the third straight year federal tax liability has dropped. Not that Republicans will give any credit to President Obama for it whatsoever.
But in the third year of Obama‘s presidency, federal taxes are at historic lows. Tax receipts dropped sharply in 2009 as the economy sank into recession. They have since stabilized and are expected to grow 3% this year. But federal tax revenue won’t rebound to pre-recession levels until next year, according to CBO projections.In the current budget year, federal tax receipts will equal 14.8% of the gross domestic product, or GDP, lowest level since Harry Truman was president. In Bush’s last year in office, tax receipts equalled 17.5% of GDP, just below their 40-year average.
At the request of The Associated Press, The Tax Institute at H&R Block compared 2008 and 2010 tax bills for families at various income levels, showing how their taxes have changed since Obama took office. Taxpayers are filing their 2010 tax returns this spring, while 2008 was the last full year that Bush was president. The scenarios assume that each family had the same income, filing status and number of dependent children in both years.Income tax rates remain unchanged. But many taxpayers are seeing their bills drop because of more generous tax credits for college students, working families, homebuyers and the working poor. Many of the changes were enacted as part of the big economic stimulus package passed in 2009.Congress also extended Bush-era tax cuts through 2012. Lawmakers let Obama’s Making Work Pay tax credit expire at the end of 2010, but they replaced it with a one-year cut in Social Security payroll taxes that is already showing up in workers’ paychecks.”
The story acknowledges the hugh size of the federal budget deficit due to spending by the federal government to save our economy from complete collapse. But while Americans continue to pay less in taxes, one has to wonder when these tax cuts are actually going to result in a stimulated economy the Republicans keep promising.
From the story: “And for the third straight year, American families and businesses will pay less in federal taxes than they did under President George W. Bush, thanks to a weak economy and a growing number of tax breaks for the wealthy and the poor.Income tax payments this year will be nearly 13% lower than in 2008, last full year of the Bush presidency. Corporate tax receipts will be lower by a third, according to projections by the nonpartisan Congressional Budget Office.