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Thursday, April 03, 2008
Rebecca Hagelin :: Townhall.com Columnist
Navigating the Numbers
by Rebecca Hagelin
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Was the Copenhagen Global Warming Summit Walk-Out a Win for the U.S.?


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.

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About The Author
Rebecca Hagelin is a public speaker on the family and culture and the author of the new best seller, 30 Ways in 30 Days to Save Your Family.
 
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Stats
GM
While this editorial is interesting it is leaving out enough numbers to ascertain what I think she is trying to say. That a tax hike on the upper 20% will expand the economy and revenue to the federal government? That would seem to be what she is implying.

Plump and DumbPiggies at the Pork Barrel
Great column though uncharitable thoughts fill my head.

So, the slick n' plump piggies went from 2,658 to 11,737 in a year with nary a concern. May the good Lord inspire John Stossel to 'stossel' the morbidly obese slick piggies for all the world to see.

Ah, to laugh about it...

Rebecca
Thanks for demonstrating exactly why the Heritage Foundation has zero credibility. Everything you say may well be correct but what you don't say gives the lie doesn't it.

"Under public pressure, the number of earmarks dropped to 9,963 in 2006 and to 2,658 in 2007"

Really oh what kind of pressure? Did something major happen?

"...That’s only 1 percentage point higher than we were spending at the time of the Sept. 11 attacks...."

Really does this number include all Iraq and Afghanistan spending including debt and replacement costs of equipment and people?

"...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..."

Now let's talk as percentage of income in real dollars. And let's talk about what 1965 income and tax burdens both were in 2007 dollars when we became the world power, landed on the moon, rebuilt most of the world and had the best healthcare, education and transportation infrastructure in the world. All you conservatives did was use what was built and build nothing to replace it. Most Americans regardless of income call that being deadbeats.

But thenk you for this piece it demonstrates perfectly why fundamentalist conservatism is bankrupt and lacks all vision

Some valid points here.
Mandatory spending(medicare, medicaid, social security)is taking an ever increasing percentage of the federal budget. And Bush, for all his faults, at least tried to deal with one of those problems(social security). Medicare is a much more severe problem. But at least Bush tried to do something, which is more than I can say for the democrats.

And Hagelin is correct the Heritage Foundation data refutes the constant liberal assertion Bush tax policy has put the screws to the poor, while favoring the rich.

I might quibble with Hagelin's glib assertion defense spending as a percentage of the federal budget has decreased in the last few years.

But isn't that due to Bush simply placing the burden on financing this war on future generations of Americans? Borrowing to fund the war?

Also, Hagelin fails to account for the fact that as federal expenditures(as a percentage)to states and local communities has decreased, states and local governments have had to raise taxes to account for the reduction of federal funding.

I would be interested to see data on aggregate tax, including federal, state, and local.


Hal Donohue...
talking about zero credibility...

Now if that isn't the laugh of the day...

Hal Donahue opines:
"Now let's talk as percentage of income in real dollars. And let's talk about what 1965 income and tax burdens both were in 2007 dollars when we became the world power, landed on the moon, rebuilt most of the world and had the best healthcare, education and transportation infrastructure in the world. All you conservatives did was use what was built and build nothing to replace it. Most Americans regardless of income call that being deadbeats."

Yes - let's talk about 1965, Hal. Pretty sure that was about the time of the experiment called the "Great Society" and the "War on Poverty".

You know, that $11 trillion war that is still being waged 40+ years later with no "victory" in sight or "exit strategy" in place?

Revise history all you must, Hal. You and your fellow leftists can't shirk your failures - but, hey... you WERE "well-intentioned"!

Hal Donahue missed ...
"Data are inflation-adjusted to 2007 dollars."

Also, "percent of GDP" is very important.

You can look at the raw budget data here: http://www.gpoaccess.gov/usbudget/fy09/hist.html (to download PDF, click link near the top for the digitally signed PDF)

Then you can see for yourself that the Heritage data is entirely credible.

Loony
Hal,
If you had an ounce of reality to your thought processes you would be 101 in logical reasoning.
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