#Economics, #Greg Mankiw

Greg Mankiw: Taxes per Person

Taxes. Nobody likes to pay them, but we understand for society to function, for our government to operate that is, we need to pay them. They help to ensure safety from foreign actors, as well as maintain a few of the necessary functions of government.

But how does our burden compare to the rest of the world?

The most common metric for answering this question is taxes as a percentage of GDP. However, high tax rates tend to depress GDP. Looking at taxes as a percentage of GDP may mislead us into thinking we can increase tax revenue more than we actually can. For some purposes, a better statistic may be taxes per person, which we can compute using this piece of advanced mathematics:

Taxes/GDP x GDP/Person = Taxes/Person
Greg Mankiw: Taxes per Person

Follow the link to find out our particular burden. You may or may not be surprised by the results, but I’m in the not camp. Entitlements will destroy this nation.