Continued from here:
OK, we’ve looked at US GDP and US government revenues (taxes) so far. The general observation to make is that US taxes have broadly declined as a % of GDP in the past 60 years. This is particularly true of corporate income taxes, despite high headline tax rates. The corporate tax take (as a % of GDP) has declined almost 75% in the same period due to powerful lobbying, more aggressive domestic tax strategies and the booking of v significant profits in low tax overseas subsidiaries. In a global context, the total tax take in the US is among the lowest in the developed world.
So what about government spending..?! Put your gloves on, let’s dig into the guts: