This CPA Tax Musing asks the question – how much of Gross Domestic Product historically does the US Government collect in taxes? Well, guess what? In the year 2000 the amount of taxes collected were 20.6 percent of GDP. That is the only year that taxes have even exceeded 20% of GDP! This is kind of a warning that if you feel you need to raise taxes to pay for programs and other items, you have an upward limit to worry about. Read this article in Accounting Today by Roger Russell:
http://www.accountingtoday.com/news/dont-mess-with-taxes-64038-1.html
So maybe Congress better think of (gasp!) spending cuts in addition to other things to get back on track.
Remember, for financial, accounting and tax musings,
You can count on us to count for you!
email bstonercpa@sbcglobal.net phone 818-317-6035 Website www.briantstonercpa.com 