[cdrw]

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.

[Conservative Goddess]

"...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

[shellshocked]

"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.

[jb6]

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.