Amid complaints about high taxes and calls for a smaller government, Americans paid their lowest level of taxes last year since Harry Truman's presidency, a USA TODAY analysis of federal data found.I think someone needs to tell FreedomWorks that their teabag followers don't know the difference between current taxation and future taxation. Consider this CBS report that indicated people really don't know how much they pay in taxes, particularly the Tea Party people, where 44 percent believe their taxes have gone up, and it seems FreedomWorks has done nothing to dispel the idea that Obama is taxing America out of house and home. Considering Republican talking points, it would appear that the administration is doing its part to lower the overall tax burden of America.
Some conservative political movements such as the "Tea Party" have criticized federal spending as being out of control. While spending is up, taxes have fallen to exceptionally low levels.
Federal, state and local taxes — including income, property, sales and other taxes — consumed 9.2% of all personal income in 2009, the lowest rate since 1950, the Bureau of Economic Analysis reports. That rate is far below the historic average of 12% for the last half-century. The overall tax burden hit bottom in December at 8.8.% of income before rising slightly in the first three months of 2010.
"The idea that taxes are high right now is pretty much nuts," says Michael Ettlinger, head of economic policy at the liberal Center for American Progress. The real problem is spending,counters Adam Brandon of FreedomWorks, which organizes Tea Party groups. "The money we borrow is going to be paid back through taxation in the future," he says.
Individual tax rates vary widely based on how much a taxpayer earns, where the person lives and other factors. On average, though, the tax rate paid by all Americans — rich and poor, combined — has fallen 26% since the recession began in 2007. That means a $3,400 annual tax savings for a household paying the average national rate and earning the average national household income of $102,000.
I'm sure conservatives will argue thatwhen the Bush taxcuts expire, Obama will have effectively raised taxes, but they would still be at a historical low point, and with Americans paying less in taxes, they would be able to do more for the economy, right?