Saturday, October 12, 2013

Historical Income Tax Revenues and the Federal Debt of the Government: Which Presidential Administrations Created that Debt and What are the True Facts?

Who created the federal debt?
Let us look at the tax and debt stats.

The answer is: mostly Republican Presidents whose administrations populistically reduced taxes, thus pulling the wool over the eyes of their gullible constituents, as their administrations then financed the federal government during their eras by borrowing money -- thus raising the debt.

Indeed, under tax-shy Ronald Reagan, federal debt TRIPLED, more than under any other U.S. President. It is a pea and shell game in which the voters are conned.

The following chart shows tax facts about the historical development of U.S. individual and corporation income taxes and the development of federal debt.

The chart shows that federal government spending and the federal debt have been set up as straw men to justify the existence of extremist factions such as the Tea Party of the Republican Party, even though that debt has spiraled upward because of the tax policies of recent Republican Presidents, who increased expenditures and borrowing for things like wars, but reduced tax income, thus necessarily raising the debt.

Individual and corporation income taxes in the United States are currently at RECORD LOW levels as compared to their historical highs and as compared to where they should be.

In fact, income taxes are way too low for our technology-based day and age, quite apart from the historical perspective. You can't be the world's dominant power on less and less taxes, not in our modern world.

That is why there is a federal debt.
TOO LITTLE TAXATION!
Americans want everything,
but are unwilling to pay for it.
That does not work and long-term is a recipe for disaster.

The tax facts are so clear and unequivocal that anyone who is screaming about federal spending, too much taxation and the boogie man of the debt ceiling should have his or her head examined. The hype has nothing do with the actual reality.

Sources:

Historical Debt Outstanding at Treasury Direct
(see also The Atlantic)
and
TAX FACTS from the Tax Policy Center, Urban Institute and Brookings Institution "U.S. HISTORICAL SOURCE of REVENUE as SHARE of GDP Receipts by Source as Percentages of Gross Domestic Product: 1934-2017"

U.S. INCOME TAXES
[as a percentage of the GDP]

We have added the columns "Total Income Taxes", "Federal Debt" and formatting items
but the statistics are taken straight from the above sources.

FISCAL Individual         Corporation Total   Federal
YEAR   Income             Income      Income  Debt in
[FY]   Taxes              Taxes       Taxes   Billions
       as %               as %        as %    of U.S.
       of GDP             of GDP      of GDP  $$$$
                                              (rounded)
1934   0.7                0.6         1.3%    $27.1 bil
1935   0.8                0.8         1.6%    $28.7 bil
1936   0.9                0.9         1.8%    $33.8 bil
1937   1.2                1.2         2.4%    $36.4 bil
1938   1.4                1.4         2.8%    $37.2 bil
1939   1.2                1.3         2.5%    $40.4 bil
1940   0.9                1.2         2.1%    $43.0 bil
1941   1.2 [Pearl Harbor] 1.9         3.1%    $49.0 bil
1942   2.3                3.3         5.6%    $72.4 bil
1943   3.6                5.3         8.9%   $137.0 bil
1944   9.4                7.1 [WWII] 16.5%   $201.0 bil
1945   8.3                7.2        15.5%   $258.7 bil
1946   7.2                5.3        12.5%   $269.4 bil
1947   7.7                3.7        11.4%   $258.3 bil
1948   7.5                3.8        11.3%   $252.3 bil
1949   5.7                4.1         9.8%   $252.8 bil
1950   5.8                3.8         9.6%   $257.4 bil
1951   6.8 [Korean War]   4.4        11.2%   $255.2 bil
1952   8.0                6.1        14.1%   $259.1 bil
1953   8.0                5.7["Ike"] 13.7%   $266.1 bil
1954   7.8                5.6        13.4%   $271.3 bil
1955   7.3                4.5        11.8%   $274.4 bil
1956   7.5                4.9        12.4%   $272.8 bil
1957   7.9                4.7        12.6%   $270.5 bil
1958   7.5                4.4        11.9%   $276.3 bil
1959   7.5                3.5        10.8%   $284.7 bil
1960   7.8                4.1        11.9%   $286.3 bil
1961   7.8                4.0[Kennedy]11.8%  $289.0 bil
1962   8.0                3.6        11.6%   $298.2 bil
1963   7.9                3.6[Johnson]11.5%  $305.9 bil
1964   7.6                3.7        11.3%   $311.7 bil
1965   7.1                3.7        10.8%   $317.3 bil
1966   7.3                4.0        11.3%   $319.9 bil
1967   7.6                4.2        11.8%   $326.2 bil
1968   7.9 [Vietnam War 3.3        11.2%   $347.6 bil
1969   9.2                3.9 [Nixon]13.1%   $353.7 bil
1970   8.9                3.2        12.1%   $370.9 bil
1971   8.0                2.5        10.5%   $398.1 bil
1972   8.1                2.7        10.8%   $427.3 bil
1973   7.9                2.8        10.7%   $459.1 bil
1974   8.3                2.7 [Ford] 11.0%   $475.1 bil
1975   7.8                2.6        10.4%   $533.2 bil
1976   7.6                2.4        10.0%   $620.4 bil
TQ 8.4 1.8
[Federal Fiscal Year (FY).... October 1 [to] September 30 of the following year.... Prior to 1976, the [FY] ran from July 1 through June 30. A transition quarter [TQ] was used in 1976 to bridge the gap between FY 1976 and FY 1977.]
1977   8.0                2.8[Carter]10.8%   $698.8 bil
1978   8.2                2.7        10.9%   $771.5 bil
1979   8.7                2.6        11.3%   $826.5 bil
1980   9.0                2.4        11.4%   $907.7 bil
1981   9.4                2.0[Reagan]11.4%   $997.9 bil
1982   9.2                1.5        10.7%  $1142.0 bil
1983   8.4                1.1 tripled 9.5%  $1377.2 bil
1984   7.8                1.5   debt  9.3%  $1573.2 bil
1985   8.1                1.5         9.6%  $1823.1 bil
1986   7.9                1.4         9.3%  $2125.3 bil
1987   8.4                1.8        10.2%  $2350.3 bil
1988   8.0                1.9         9.9%  $2602.3 bil
1989   8.3                1.9[Bush 1]10.2%  $2857.4 bil
1990   8.1                1.6  150%   9.7%  $3233.3 bil
1991   7.9                1.7  in     9.6%  $3665.3 bil
1992   7.6                1.6 1 term  9.2%  $4064.6 bil
1993   7.7                1.8[Clinton]9.5%  $4411.5 bil
1994   7.8                2.0         9.8%  $4692.7 bil
1995   8.0                2.1        10.1%  $4974.0 bil
1996   8.5                2.2        10.7%  $5224.8 bil
1997   9.0                2.2        11.2%  $5413.1 bil
1998   9.6                2.2        11.8%  $5526.2 bil
1999   9.6                2.0        11.6%  $5656.3 bil
2000  10.2                2.1        12.3%  $5674.2 bil
2001   9.7                1.5[Bush 2]11.2%  $5807.5 bil
2002   8.1                1.4         9.5%  $6228.2 bil
2003   7.2                1.2 doubled 8.4%  $6783.2 bil
2004   6.9                1.6   debt  8.5%  $7379.1 bil
2005   7.5                2.2         9.7%  $7932.7 bil
2006   7.9                2.7        10.6%  $8507.0 bil
2007   8.4                2.7        11.1%  $9007.7 bil
2008   8.0                2.1        10.1% $10024.7 bil
2009   6.6  record low    1.0 [Obama] 7.6% $11909.8 bil
2010   6.3   taxation     1.3         7.6% $13561.6 bil
2011   7.3                1.2         8.5% $14790.3 bil
2012   7.3                1.6         8.9% $16066.2 bil


The problem of the Obama administration is that the country is laboring under record low taxation and is still fighting wars around the world and playing the big guy on the block, but its citizens are unwilling to pay for it.

Reduction of federal spending is not the solution.
Capping the debt ceiling is not the solution.

The only solution is to get federal taxation back up to sane levels to properly finance the federal government in an America on the wane because of idiotic tax policy by the Republican Party, whose Presidents got the country into the mess to begin with by unnecessarily dropping taxes while still financing the federal government as if nothing had happened, and thus leading to a nation of rampant inequality of wealth and income and huge federal debt.

Only a radical solution can help, and the Tea Party, 180° wrong in their tax policy, is not it.

You have to start taxing individuals and corporations again at sane rates. If that is not done, civil disorder and a national collapse are just around the corner and then all the money in the world that the greedy in the USA have collected will not help them.

That is why revolutions begin, because of the greed of the upper financial classes who can never get enough, leaving in their dust the mass of lower classes who ultimately rise up, with disastrous results for the nation.


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