Principles of Macroeconomics :3

1. 12 The Design of the Tax System

2. “ In this world nothing is certain but death and taxes.” . . . Benjamin Franklin Taxes paid in Ben Franklin’s time accounted for 5 percent of the average American’s income. 1789 0 20 40 60 80 100

3. “ In this world nothing is certain but death and taxes.” . . . Benjamin Franklin 1789 Today, taxes account for up to a third of the average American’s income. 0 20 40 60 80 100 Today

4. Figure 1 Government Revenue as a Percentage of GDP Copyright © 2004 South-Western 0 5 10 15 20 25 30 35 Revenue as Percent of GDP 1902 1922 1927 1913 1940 1932 1970 1980 1990 2000 1950 1960 State and local Federal Total government

5. Table 1 Central Government Tax Revenue as a Percent of GDP Copyright©2004 South-Western

10. Table 2 Receipts of the Federal Government: 2001 Copyright©2004 South-Western

11. Receipts of the Federal Government... Individual Income Tax, 50% Social Insurance Tax, 35% Corporate Tax, 8% Other, 8%

15. Table 4 Spending of the Federal Government: 2001 Copyright©2004 South-Western

16. Federal Government Spending: 2001 Social Security, 23% Defense, 17% Net Interest, 14% Income security, 14% Medicare, 12% Health, 9% Other, 14%,

20. Table 5 Receipts of State and Local Governments: 1999 Copyright©2004 South-Western

22. Table 6 Spending of State and Local Governments: 1999 Copyright©2004 South-Western

37. Table 7 Three Tax Systems Copyright©2004 South-Western

38. Table 8 The Burden of Federal Taxes Copyright©2004 South-Western