Tax protesters take heart. Not only does it feel like Uncle Sam and his cohorts are taking a bigger swallow out of your paycheck than they used to, but a Utah Foundation report says that assumption's true.
What the government takes in taxes has increased 139 times since 1929, while the overall economy expanded only 47 times during the same period.The foundation, a private tax research organization, said federal, state and local government receipts increased from $11.3 billion in 1929 to $1,565.1 billion in 1988. In comparison, the gross national product rose from $103.9 billion in 1929 to $4,681.8 billion in 1988.
Government receipts were equal to 10.9 percent of the gross national product in 1929 and 32.3 percent in 1988.
In 1929, the foundation reports, approximately 40 percent of all federal, state and local tax receipts were derived from property tax. In 1988, the property tax accounted for only 8.3 percent of all government receipts.
In 1988, nearly 32 percent - or $496.8 billion - of all federal, state and local receipts in the country came from personal income taxes, with another 9 percent - or $141.1 billion - coming from income taxes imposed on corporation. Social insurance contributions, including social security taxes, total $444.6 billion or 28.4 percent of all government receipts.