Taxonomy

According to Kevin Williamson in National Review:

The last time we (US Government) had a surplus, tax revenue was 18.8 percent of GDP and spending was 17.6 percent of GDP. That was 2001.

Amateurs.  Rank amateurs.

The Commonwealth Government of Australia has a tax target of 23.9% of GDP.  And this does not include fees (like ASIC and APRA cost recovery) and the effect of compulsory superannuation (coz the US figure include social security, ie pension, contributions).

Imagine the state of the US economy and budget if their government collected 23.9% of GDP as tax.  A target the Labor opposition has stated it plans to ignore and exceed.

Now imagine the state the Australian economy and budget if our mob collected 18.8% of GDP as tax.

When it comes to budget profligacy, those Americans are just amateurs.

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9 Responses to Taxonomy

  1. Karabar

    If only Bonehead had heard of Art Laffer.
    But then he wouldn’t be able to understand it anyway.
    It’s not Keynesian.

  2. Dr Fred Lenin

    Well at least we lead the world in one feild ,well dunned career polliemmuppets,when is your next salary increase ?

  3. Ƶĩppʯ (ȊꞪꞨV)

    Socialists are only happy when tax approaches or exceeds 110%

  4. Aynsley Kellow

    I think you need to make explicit the effect of state income taxes and sales taxes in the US.

  5. Ian of Brisbane

    Is there anyone remaing in the Libs worth voting for?

  6. John Bayley

    From what I can find out, Australia’s tax to GDP ratio back in 1900 was about 5% in total.
    The Yanks were at 3% or so.
    The economic freedom at that time was something we can only dream about imagine today, and the learned central bankers’ models would break trying to work out the then-normal rates of growth.
    Money increased in value over time, too, because nobody had yet ‘discovered’ that we ‘need’ 2% inflation and that the economy needs to be ‘stimulated’ by printing loads of cash.
    So yes, perhaps the Americans have done a little better than us since then, but then again we both pale in comparison with the likes of France or many other European countries.
    Government is like cancer: It can only grow. Any shrinkage will be only temporary and will be taken back with a vengeance in short order.
    Until the host dies.
    Europe has pretty much arrived.
    We’re getting there.

  7. Colonel Crispin Berka, King's Fusiliers Corps.

    If only Bonehead had heard of Art Laffer.

    I’m sure they are well aware of this basic principle of calculus and the Intermediate Value Theorem as it applies to tax revenue.
    But they probably believe the tax rate is on the low side of the Laffer Peak and they are aiming for the summit.

    Do not ask what you can do for your country, ask what your country can confiscate for you.

  8. Malcolm Thomas

    Well, if they collected as much tax as us, they could have a health system as good as ours.

  9. Rococo Liberal

    You forgot to add the US States into the calculation, as they impose income taxes.

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