06-22-2024, 04:24 PM
"Top Marginal Tax Rates" is an extremely misleading metric, because it lacks the context of carve outs and loopholes, and other deductions. And the biggest issue is capital gains have long been a major component, and the very wealthy are able to defer taxes on realized income almost indefinitely until rates are more favorable.
Collections by source have been pretty stable going back to the 50's. Corporate taxes have come down from then, but more or less stable for the past 40 years.
![[Image: TaxRevenue.png]](https://images.squarespace-cdn.com/content/v1/50060e33c4aa3dba773634ec/1507048870252-J5C9MLDNQRBTH1N1EDC3/TaxRevenue.png)
We have, and continue to have, a spending problem. Historical receipts as a % of GDP has generally fallen within +/-1% of 18%. But after spending fell to historic lows in the 90's, it began increasing steadily the next 20+ years to reach historic highs (despite historically & artificially low interest rates for much of that time - debt service at these rate levels will continue to increase spending significantly if this rate environment is the new norm).
![[Image: York-3-27-1.png]](https://files.taxfoundation.org/20190327113636/York-3-27-1.png)
Collections by source have been pretty stable going back to the 50's. Corporate taxes have come down from then, but more or less stable for the past 40 years.
We have, and continue to have, a spending problem. Historical receipts as a % of GDP has generally fallen within +/-1% of 18%. But after spending fell to historic lows in the 90's, it began increasing steadily the next 20+ years to reach historic highs (despite historically & artificially low interest rates for much of that time - debt service at these rate levels will continue to increase spending significantly if this rate environment is the new norm).
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