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Amidst debate over President Bush's tax cuts and his proposal to keep the increase in federal spending to 4 percent this year, elements in Congress are howling that the government is headed for a starvation diet.
Actual data, however, show that government revenue has just exceeded its post-World War II high. Federal taxes alone reached 20.8 percent of Gross Domestic Product in 2000--their highest rate in more than 50 years, and well above the post-war average of around 18 percent.
Between direct federal, state, and local taxes, plus indirect regulatory ...