American Thinker Blog: Graph of the Day for May 19, 2010

May 19, 2010
Graph of the Day for May 19, 2010
Randall Hoven
"The feds assume a relationship between the economy and tax revenue that is divorced from reality. Six decades of history have established one far-reaching fact that needs to be built into fiscal calculations: Increases in federal tax rates, particularly if targeted at the higher brackets, produce no additional revenue... a ratio of federal revenue to GDP of no more than 18.3% would be realistic."
David Ranson, Wall Street Journal.

Source: David Ranson, Wall Street Journal. HT: sedonaman.

Hoven's Index for May 19, 2010


Average federal revenues, as % of GDP, over various periods:

1950-59: 17.2%

1960-69: 17.9%

1970-79: 17.9%

1980-89: 18.3%

1990-99: 18.6%

1960-2000: 18.2%

2000-08: 18.2%

Source: US Government via GPO Access, Table 1.2.