The Moment You Realize Medicare Is Preferable To Obamacare

On Friday we learned of a rumor that a possible “fiscal cliff” deal was emerging behind closed doors. The deal would raise the top tax rate to from 35 to 37% (not 39.6%) in exchange for the Medicare eligibility age rising from 65 to 67. Let me go on the record and say I think this is a bad deal. Not only does the top tax rate not return to pre-“Bush tax cut” level, but in the bargain we throw seniors under the bus.

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Tax Revenue, Post-WWII, Averages 17.7 Percent Of GDP

In the years since World War II (1946-2011), federal tax receipts have averaged 17.7% of Gross Domestic Product (GDP). This is probably the best way to gauge the federal tax burden because it compares it to economic output. Since there are many arguments in and out of Washington D.C. about the effects of taxation on economic growth, it makes sense to directly compare the measure of taxation (total federal tax receipts) with the measure of economic output (GDP).

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