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Can government be cut? (Indicators).(government tax revenue)(Brief Article)

The American Enterprise

| April 01, 2003 | Zinsmeister, Karl; Lehrer, Eli | COPYRIGHT 2003 The American Enterprise, a national magazine of politics, business and culture (TEAmag.com). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

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 ...

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