CASE STUDY

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CASE STUDY HE FISCAL CHALLENGE AHEAD over government revenue is only the tip of an iceberg: Long term projections of the government’s budget show that, under current law, the government will spend vastly more than it will receive in tax revenue in the decades ahead. As a percentage of gross domestic product (the total income in the […]

A FINANCIAL OVERVIEW OF THE U.S. GOVERNMENT

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A FINANCIAL OVERVIEW OF THE U.S. GOVERNMENT How much of the nation’s income does the government take as taxes? Figure 1 shows government revenue, including federal, state, and local governments, as a percentage of total income for the U.S. economy. It shows that the role of government has grown substantially over the past century. In 1902, the […]

The Design of the Tax System

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The Design of the Tax System Surface Capone, the notorious 1920s gangster and crime boss, was never convicted for his many violent crimes. Yet eventually, he did go to jail-for tax evasion. He had neglected to heed Ben Franklin’s observation that “in this world nothing is certain but death and taxes.When Franklin made this claim in 1789, […]