Over the past century what has happened to government revenue in the U.S.?
Critical Analysis
Find answers to the following questions using the visual above, any links below, your big brain, and your knowledge of American government and politics:
GNP (Gross National Product) measures the total monetary value of the output produced by a country's residents. According to the data above, in 1902, about what percent of the GNP or Gross National Product was taken as government revenue (tax)?
By 1992, about what percent of GNP or total national income (the amount of income Americans created that year) was taken as government revenue (taxed)?
Describe the change over time as shown in the chart above in the amount of money Americans were paying to all governments in taxes.
By 1992, which level of government received the most tax revenue?
Explain the connection between federalism - the division of powers between national, state, and local governments - and the change over time in the amount of income received by the different levels of governments as shown in the chart above.
Based on your knowledge of American political history, approximately what percentage of tax revenue would have gone to the national American government under the Articles of Confederation?
On February 3, 1913 the 16th Amendment was ratified giving the national government the ability to tax income for the first time. “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” What happened to the percent of taxes going to the federal government after 1913?
Based on the changes in the percent of the GNP (our national income) taken by the government, what do you think this chart will look like by 2040?
In a democracy, the people are supposed to have control over the government, instead of the other way around. What does the amount of the gross national product (America’s national income) taken by the government say about the level of democracy in America?
If we went back to the tax rates of 1902 what changes would the government immediately need to make?
Write and Discuss
Take ten minutes to write about the question at the top of the page and then discuss with your classmates.
Act on your Learning
The next election will be here sooner than you can imagine. If you are reading this you might just be eligible to vote in the next big election. The people who you elect will decide how much to tax you and your fellow Americans. Register to vote now.
Get Creative
If American federalism were an ice cream flavor, what would it be?