Thursday, August 13, 2009

At last - it's Cost Of Government Day!

According to the Center for Fiscal Accountability, a project of Americans for Tax Reform, August 12th, 2009 was 'Cost Of Government Day' this year.

Every year, the Americans for Tax Reform Foundation and the Center for Fiscal Accountability calculate Cost of Government Day. This is the day on which the average American has earned enough gross income to pay off his or her share of the spending and regulatory burdens imposed by government at the federal, state, and local levels.

In 2009, Cost of Government Day falls on August 12. Working people must toil 224 days out of the year just to meet all costs imposed by government - a full 26 days longer than last year.

In other words, in 2009 the cost of government consumes 61.34 percent of national income.

The Center goes on to give details of its findings. In a section titled 'The Government Spending Burden' it shows how Federal, State and local taxes of all types affect us.

Federal spending continues to be the single largest component of the total cost of government and the main driving force leading to the substantial increase in the cost of government over the last nine years. In 2009, this trend was additionally augmented by the spending provisions in the Emergency Economic Stabilization Act (EESA) of 2008 and the American Recovery and Reinvestment Act (ARRA) of 2009.

The average American will have to work 111 days just to pay for the cost of federal spending, which will consume 30.36 percent of national income this year. This is a jump of over 31 days compared to 1999 and almost 21 days compared to 2008. This increase was caused by the rapid growth in federal spending relative to the growth of national income. Federal spending relative to the economy has increased by 39 percent since 1999.

Sadly, this is not the end. Looking at the speed at which the 111th Congress alongside the new President is spending taxpayers’ money now, we can expect a gigantic expansion of the federal government spending burden going forward.

. . .

In 2009, the average American will work 49 days to pay for state and local spending. That is up from 42.5 days in 1999 and 44 days in 2004. Consequently, in the last five years alone, state and local spending has grown by 10 percent relative to national income.

Unfortunately, this trend toward higher state spending will likely increase in future years. While the trillion dollar spending and debt package passed by Congress under the guise of economic “stimulus” was used by many states to help cover their 2009 budget “shortfalls,” this federal money comes with many strings attached that prevent offsetting savings at the state level. In five to ten years, state budget baselines will have risen significantly, but the money from Washington, D.C. that contributed to this excessive spending growth will no longer be there to support it.

Once the one-time injection of federal “stimulus” dollars dries up, taxpayers in the states will be on the hook to pay for the expansion of state spending programs upon which acceptance of the “stimulus” was contingent. Furthermore, higher spending on programs that came with matching federal funds will mean that when states look to reduce their bloated budget baselines in future years, revenue will come up twice as short.

It is clear that states are not living within their means.

Makes you think, doesn't it?

There's much more at the link. Depressing reading, but very important information if you want (as I do) to roll back the ever-increasing size of government, and the rate at which it's expanding.


1 comment:

The Old Man said...

Unfortunately, the lib-ruls need a positive first derivative. But now the 2nd is declining. OOoops.

Sucks to be them.