A “tax” is defined by the Collins English Dictionary as a “compulsory financial contribution imposed by a government to raise revenue….”
Between 1929 and 2018, inflation-adjusted federal, state and local tax collections per person in the U.S. have ranged from $1,144 to $15,913 per year, with the median being $9,641 and the average $8,829:
Between 1940 and 2018, inflation-adjusted federal, state and local tax collections per household in the U.S. have ranged from $8,514 to $41,002 per year, with the median being $30,126 and the average $28,396
Between 1929 and 2018, the portion of the U.S. economy collected in federal, state and local taxes has ranged from 10% to 28%, with the median being 25% and the average 23%
Per the U.S. Government Accountability Office, when government spends more than it collects in revenues, the resulting debt is “borne by tomorrow’s workers and taxpayers.”
In addition to government debts, explicit and implicit government obligations such as public employee pensions and Social Security/Medicare benefits also constitute a burden on future taxpayers.
In 2018, the gap between federal, state and local government revenues and spending was $1.2 trillion or an average of $9,589 for every household in the U.S.
Between 1929 and 2018, inflation-adjusted federal tax collections per person in the U.S. have ranged from $236 to $10,575 per year, with the median being $6,398 and the average $5,881
Between 1940 and 2018, inflation-adjusted federal tax collections per household in the U.S. have ranged from $4,308 to $27,910 per year, with the median being $19,832 and the average $19,179
Between 1940 and 2018, inflation-adjusted state and local tax collections per household in the U.S. have ranged from $3,480 to $14,051 per year, with the median being $9,984 and the average $9,217.
Between 1929 and 2018, inflation-adjusted state and local tax collections per person in the U.S. have ranged from $793 to $5,472 per year, with the median being $3,152 and the average $2,948.
In New Mexico, residents who are 100 or older no longer have to pay any income tax.
In New York, you don’t have to pay a tax for a whole bagel. However, if your bagel is “prepared,” including if it’s simply cut, you’ll have to pay an extra 8 cents in taxes per bagel.
While all US taxpayers have to pay federal income taxes, not every state has an income tax. There are seven states that don’t: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.