The government says that the tax burden will be $2.6 trillion in 2008. But counting the "deadweight" loss from damage done by taxes to the private economy, the real tax burden is twice that-roughly$ 5.2 trillion.
On the spending side, a study by the Office of Management and Budget showed that government programs on average fall 39% short of meeting their goals. THus, in 2008 , government will spend $2.7 trillion to provide $1.65 trillion of benefit. $5.2 trillion tax burden for $1.65 trillion benefit?
In 2008 American will spend more on taxes than they will spend on food, clothing and housing COMBINED.
Everyone has been complaining about gas prices lately and Obama wants to put a tax on the 'windfall profits' that the oil companies are making, while McCain wants to 'investigate' the speculation that goes on and how that impacts the gas prices. Well there are some interesting numbers there too. The governments makes a MINIMUM of 13% on every tank of gas sold. That is higher in some places like California and does NOT include the INCOME taxes they make off the oil companies. The oil companies make 8.3% on every tank of gas sold.
Other interesting numbers on this topic...How many new refineries have been built in this country in the last 30 years-0. Not to mention that they won't let us drill for oil domestically which would greatly eliminate our dependance on foreign oil but to be fair they have their reasons I think the "American Thinker" put it best 1) Such drilling might enrich the evil oil companies who exploit us by providing cheap, abundant fuel at profit; 2) such drilling might harm the environment in mystical ways immune to scientific inquiry ;3) Actually finding oil might stop the artificially induced conservation efforts of Leftist by allowing middle class American to drive as if they were limousine liberals.
Hillary and Obama are both looking to take the oil companies profits. The problem is a large portion of those profits largely belong to the American people. 40% of Americans are heavily invested in big oil. And the real figure is probably much higher than that. If you have mutual funds, stock market funds, or if you have a pension fund, a 401-K or and IRA or even a bank account, you are invested in the big oil companies because these companies have had the greatest return on investments.
Obama's spending strategy is this: he wants to spend $150 billion on a green-energy plan. He want to establish an infrastructure investment bank to the tune of $60 billion. He wants to expand health care by roughly $65billion. He wants to "reopen" trade deals (i.e. raise the barriers to free trade). He intends to regulate the profits for drug companies, health insurers and energy firms. He wants to establish a mortgage-interest tax credit. He wants to double the number of workers receiving the earned-income tax credit and triple the benefit for minimum wage workers. The WSJ's Steve Moore has done the math on Obama's tax plan. It is going to cost about $800 billion. It is going to add up to 39.6 % personal income tax, a 52.2% combined income and payroll tax, a 28% capital gains tax , a 39.6% dividends tax and a 55% estate tax.
That might be enough numbers for now, especially because so many people really seem to be OK with the idea of redistributing wealth, and have bought into the concept of making big companies pay. I think I shall end with a thought from President Ford.
"A government big enough to give you everything you want, is strong enough to take everything you have."