Total taxes we pay?

[Lord T Hawkeye]

Just a quick question.  When you break it all down, how much of the average American's pay cheque is getting snatched up by the government in total?  In a discussion, I said it was as high as 70% but someone didn't believe me.  I admit, the 70% was a bit of a ballpark estimate that I'd heard before.

Am I off and what's the breakdown so I can set the record straight?

[Travis Retriever]

Look for a version of Harry Browne's "Why Government Doesn't Work".
He breaks down the taxes thing very well.  It was about 48% of national income in 1995.
Along with the effects of State Regulation (at LEAST another 10%).
Then inflation, with, if you include the expansion of M3, is at LEAST 10%.

Considering that was 14 years ago, it's definitely safe to say all of them are higher today (with the possible exception of inflation; that was something I got from Shane recently).

The estimation settled on between me and Shane is about 75% of national income.

[MrBogosity]

According to Americans for Tax Reform, it's 61.34%:

http://www.fiscalaccountability.org/index.php?content=cogd-teas

[Travis Retriever]

According to Americans for Tax Reform, it's 61.34%:

http://www.fiscalaccountability.org/index.php?content=cogd-teas

Only 61.34%?
Damn.
Do you know if that includes inflation (e.g. Deficit spending)?

[MrBogosity]

No, it doesn't count inflation or "broken window" effects.

[Travis Retriever]

No, it doesn't count inflation or "broken window" effects.

OK.  That might explain the decrepency between this figure and the one you and I agreed on.

By the way, can you give an example/explanation of "broken window" effects? ^^;

[MrBogosity]

Government taxes a business. We all know that they have to pass those costs on to the customer. What a lot of people don't realize is that the higher price means that they're producing and selling less--the supply curve gets shifted to the left. Like the suit in the Parable of the Broken Window, the reduction in supply represents a loss to the economy. But no one ever sees it.

[Travis Retriever]

Government taxes a business. We all know that they have to pass those costs on to the customer. What a lot of people don't realize is that the higher price means that they're producing and selling less--the supply curve gets shifted to the left. Like the suit in the Parable of the Broken Window, the reduction in supply represents a loss to the economy. But no one ever sees it.

Got it.
I asked because taxes, inflation and (state) regulation all have a broken window effect, so it seemed odd for you to mention it again.
I'll take the example you mentioned as what you meant by it originally.

[Lord T Hawkeye]

And people can't understand why I have to supress laughter when they rant about "greedy robber barons."

Seriously?  75%?  Enron were philanthropists by comparison.

[Travis Retriever]

In stark difference to TJ's "11%".