To: jpl
Right.
I haven't looked at the GDP numbers is a couple years but last I remember a 2.5 trillion budget would be nearly 25% of GDP. And that doesn't include state or local taxes. That's a huge cut to take out of the economy (even if our European socialist counterparts make even larger grabs).
Your calculations are probably accurate. That means the average family of four has to cough up $34,000 in taxes each year (by means of direct taxes plus taxes that are built into the price of everything they buy). Across the board cuts won't work. Entire programs need to be scrapped or radically restructured to achieve their goals in more cost effective ways.
42 posted on
02/07/2005 8:52:27 AM PST by
cdrw
(Freedom and responsibility are inseparable)
To: cdrw; ancient_geezer; Badray
"...That means the average family of four has to cough up $34,000 in taxes each year (by means of direct taxes plus taxes that are built into the price of everything they buy)...."
You are absolutlely correct. Only The FairTax Act (HR 25/S 25) would remove the cost of embedded taxation from the goods we produce and put it on the receipt, as a clearly labeled tax. The FairTax Act makes the full cost of government visible to all...and that would put the brakes on spending faster than anything.
Ping to Ancient-Geezer and Badray
86 posted on
02/07/2005 1:50:11 PM PST by
Conservative Goddess
(Veritas vos Liberabit, in Vino, Veritas....QED, Vino vos Liberabit)
To: cdrw
"nearly 25% of GDP. And that doesn't include state or local taxes. "
I figured just recently that the state budgets account for another $1.1 trillion and the county and local government are another $1 trillion. That is about 40% of the GPD.
To: cdrw
I read that according to Ann Rand, if total government spending was over 22% of the GDP (at all levels) it adversely affected the economic growth. It crowded out private borrowers and cut into company growth.
174 posted on
02/07/2005 7:54:45 PM PST by
jb6
(Truth = Christ)
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson