Budget and Tax Facts

Michelle Malkin lists some remarkable “fun” facts about the Obudget, including these nuggets:

In 2009, federal spending will approach $4 trillion, or 28 percent of gross domestic product (GDP) – a one-third increase in the size of government in a single year….

1. The Administration’s projected budget deficit of $1.75 trillion is higher than the last five years of deficits combined, and under this plan, we will see three consecutive trillion dollar deficits between now and FY 2012.

2. While it was purported to cut the budget deficit in half – from $1.75 trillion in 2009 to $533 billion by 2013 – this budget projects higher deficits in 2014 ($570 billion), 2015 ($583 billion), and 2016 ($637 billion). In 2019, the final year in the budget, the deficit is projected to be $712 billion.

3. Including the recently-enacted trillion-dollar “stimulus” spending bill, discretionary spending will soar by 24 percent this year under this budget.

4. The budget projects that the national debt will increase from $8.4 trillion in 2009 to $15.4 trillion in 2019.

Meanwhile, Greg Mankiw cites CBO numbers on average effective tax rates:

Lowest quintile: 4.3 percent
Second quintile: 9.9 percent
Middle quintile: 14.2 percent
Fourth quintile: 17.4 percent
Percentiles 81-90: 20.3 percent
Percentiles 91-95: 22.4 percent
Percentiles 96-99: 25.7 percent
Percentiles 99.0-99.5: 29.7 percent
Percentiles 99.5-99.9: 31.2 percent
Percentiles 99.9-99.99: 32.1 percent
Top 0.01 Percentile: 31.5 percent

N.B.: These figures include all federal taxes, not just income taxes.

The tax system is already remarkably progressive, even when payroll taxes are included.

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