You know the expression "The numbers don't lie"? Well, after you
spend a few minutes perusing The Heritage Foundation's new "
2008 Federal Revenue and Spending Book of Charts," you may wish
they did.
Ever wonder where your tax money goes? How much the "richest 1
percent" shells out in taxes? How bad congressional pork-barrel
spending is? What it will take to pay Social Security and Medicare
benefits to the baby boomers? How high the federal budget deficit
is set to climb in the decades ahead?
The pathetic truth is boldly presented in Heritage's Book of
Charts, along with the answers to many other questions. Our
analysts used official calculations from the federal government's
own budget, the Congressional Budget Office, and the Census Bureau,
as well as information from watchdog groups such as Citizens
Against Government Waste, to outline what can only be described as
a slow-motion fiscal train wreck.
Let's start with something that all of us -- rich, poor and in
between -- can relate to:
how much we pay per household in taxes.
In 1965, the tax bill (inflation-adjusted to 2007 dollars) was
$10,800. By the early 1990s, it had risen to $15,801. By 2000, the
total had spiked to $23,151 in taxes per household. It's a tad
lower now ($22,100), but the amount each household pays is still
more than twice what it was 40 years ago. Remember that the next
time you hear some politician claim we have to raise taxes!
That's not the only counterintuitive point you find in Heritage's
chart book. Take
how much high-income households pay in taxes. Is the top 1
percent paying a larger or smaller share of taxes today than in
1983? How about the bottom 20 percent -- larger or smaller?
If you listen to some politicians, you probably think the tax
burden got lighter for the rich and heavier for the poor. But
that's not at all what the Congressional Budget Office numbers
show. The top 1 percent of earners went from paying 27.7 percent of
the tax burden to 31.2 percent -- an increase of 12.6 percent. The
bottom 20 percent, meanwhile, saw its share of the tax burden go
from 9.1 percent to 4.3 percent. That's right: It was actually cut
in half, and then some. Try finding that out by reading The New
York Times or watching CBS News.
How about defense spending? With the War on Terrorism in full
swing, many people assume we're paying out quite a bit these
days.
In fact,
defense spending -- even with war costs factored in -- is well
below the historical average. Today we're spending less than 4
percent of gross domestic product (GDP) on defense. That's only 1
percentage point higher than we were spending at the time of the
Sept. 11 attacks. And it's still below the 6.2 percent of GDP we
were shelling out for defense during the waning years of the Cold
War in the 1980s -- and significantly less than the 9.5 percent we
spent in the late 1960s, at the height of the Vietnam War.
I'll finish with one more gruesome example from the Heritage
charts. It's a media favorite:
pork-barrel spending, or budget "earmarks."
As you probably know, this practice of funding pet projects went
up significantly over the last decade or so. Heritage's chart book
shows that the number of earmarks rose pretty steadily from 546 in
1991 to a high of 13,997 in 2005. Eventually, though, the practice
became better known, thanks to Alaska's "Bridge to Nowhere" and
other infamous examples. Under public pressure, the number of
earmarks dropped to 9,963 in 2006 and to 2,658 in 2007.
Case closed? Hardly. The number of earmarks in Fiscal Year 2008:
11,737. Looks as if the new congressional leadership has really
learned its lesson, huh? Makes you long for the days of a president like Ronald Reagan,
who vetoed the 1987 transportation bill because it contained a
whopping 152 earmarks.
No doubt about it: The Heritage Foundation's "
2008 Federal Revenue and Spending Book of Charts" paints a grim
picture. But it's a necessary one. In a series of downloadable,
easy-to-read charts, it shows how our tax money is being managed --
or should I say mismanaged? -- by our elected officials in
Washington. If you want to ensure that you're fully informed as you
head to the polls this election year, there's hardly a better way
to … well, spend your time.
###
Rebecca Hagelin, a vice president at The Heritage Foundation, is the
author of "Home Invasion: Protecting Your
Family in a Culture That's Gone Stark Raving Mad" and runs the
Web site HomeInvasion.org.
COMMENTARY Taxes
NAVIGATING THE NUMBERS
Apr 3, 2008 3 min read
Exclusive Offers
5 Shocking Cases of Election Fraud
Read real stories of fraudulent ballots, harvesting schemes, and more in this new eBook.
The Heritage Guide to the Constitution
Receive a clause-by-clause analysis of the Constitution with input from more than 100 scholars and legal experts.
The Real Costs of America’s Border Crisis
Learn the facts and help others understand just how bad illegal immigration is for America.
More on This Issue
COMMENTARY 2 min read
COMMENTARY 2 min read
COMMENTARY 2 min read