A number of tea parties were held recently in celebration of the Boston Tea Party. For those of you who don't know the history of the Boston Tea Party, it basically marked the end of low-tax British Government Regime and the institution of the high-tax US Government Regime.
Not much to celebrate for sure. Now Tea Partiers celebrate the time of year when they've finished paying money to the government (about 35% of their year) and are now earning for themselves.
This is clearly misdirected and wrong. These guys really need to take a long hard look at the numbers.
The GAAP budget shortfall of $4.3 trillion is what Americans will have to pay in future taxes. So it's nothing more than a deferred tax.
If we add on the $1.75 trillion that individual American's already paid in tax, that brings the total tax bill to $6.05 trillion.
With the 155 million Americans over 15 that are working and earning an average of $39,500 a year, total personal income in the US is $6.12 trillion.
That means total paid and deferred taxes account for 98.9% of the average income. This puts the proper celebration for the Tea Party on the day after Christmas. This still gives Americans four days to earn money for themselves (and five in a leap year)!
Cheers,
Peter.
