Tired of T*E*A Lies

The USA collects a smaller percentage in taxes than most Developed Nations. A look at 2010 data reveals that the U.S. is one of the least taxed countries in the Organization for Economic Cooperation and Development (OECD), according to a study by Citizens For Tax Justice. The only countries in the OECD that collected a smaller percentage in taxes are Chile and Mexico, according to the data. The OECD is a group of 34 countries that work together to improve the global economy.

USA collects smaller percentage in taxes than most Developed Nations
Enlarge Chart

So, are you T*E*A? Are you TIRED OF TAXES? Wouldn't you like to keep ALL the money you make each day? Don't you deserve it? You work hard. You might face high monthly student loan payments to pay back the government for helping you get through college. Maybe a house payment? Car payments? Costs for kids? How will you make it? How do you spell relief? T*E*A? Millions of Americans claim they are Taxed Enough Already today. Are you in this group?

Wealthy Households Receive Disproportionate Share of Tax Expenditures
Who Receives Public Money

How does one fairly determine if they are TEA? First, we must recognize we have a great deal of federal debt — about $14.2 TRILLION at this time. If we are to divide this up equally between us — 300,000,000 men, women and children — we each owe $47,333. Send your check soon to the IRS.

Second, ALL of us demand many government services. The federal budget currently runs roughly $3.6 TRILLION per year. Military alone costs about $1.2 TRILLION per year today — your share comes to about $4,000 to keep America and the world safe. If you have a family of four, your national defense bill would be some $16,000. Pay up!

Yet taxes aren't collected this way. Some are considered "progressive," as those who make more pay a higher percent. Others are considered "regressive," as the less fortunate pay a higher percent. The bottom line is America's Most Fortunate pay the lion's share of taxes — federal, state and local. You likely aren't in this high earner group ... so let's give them a hand. They sacrifice a great deal for America. On the other hand, America has been a good home for them.

The Tax Foundation publishes many statistics about taxation in America. For analysis purposes, they divide households into five equal groups, 20 percent each. Using 2004 data, Figure 4 highlights the dollar amount on average each group pays in federal taxes and compares to the dollar amount on average each household group receives in government services. Figure 5 does the same thing for state taxes.



Who Pays Federal Taxes in 2004
Who Pays and Who Receives Federal Taxes
Who Pays State Taxes in 2004
Who Pays and Who Receives State Taxes

Here's the first take-away from reviewing these illustrations: the top two groups, 40 percent of households, pay more in taxes than they receive in services. Conversely, the lowest three groups, 60 percent of households, receive more in services than they pay in taxes.

QUIZ Question: In which group do you place your household? In which group or groups are TEA members primarily located?

SOURCE: Chamberlain, Andrew, Gerald Prante and Scott A. Hodge, "Special Report: Who Pays America's Tax Burden, and Who Gets the Most Government Spending?" Tax Foundation, No. 151, March 2007.