Question by Joe: How considerably taxes must the Federal Govt acquire as a % of GDP?
So the last GDP was about 14 trillion, and the IRS collected about 20% of that in federal taxes in 2009.
The difficulty is, above 90% of people taxes had been paid for by the best half of revenue earners. By the way, if you created $ 60K last year, that tends to make you a leading 50% earner.
Best solution:
Solution by imaxkr
Federal government spending should be capped at about 14% of GDP, the historic norm in peace time.
What do you assume? Solution beneath!
We don’t have a tax problem we have a spending problem.
The US tax rate is actually low by world standards. For example, Canada, which by most measures is doing very well indeed, collects about 1/3 of the GDP in tax (between federal and provincial), which pays for many services on which the citizens depend (including health care).
The tax system is fraudulent in that many of those people who do earn over 250K and work for the government or unions end up paying less than those who earn as much in the private sector. The last statistic I remembered was that we pay up to 22% of the GNP in taxes which is what it was around the great depression. The government should cut all spending by 10% or more across the board.