What would you guess is the average federal income tax rate in the USA? 20%? 30%? 50%?
What would you say would be a good target tax rate? Would 20% be a fair price to pay for:
- The interstate highway system
- Airports and the air traffic control system which prevents (most) planes from smashing into each other
- Armed forces, including Army, Navy, Air Force, and Coast Guard
- Not having the elderly begging for alms in the streets (i.e. Social Security)
- Someone to foot the bill when your elderly mother needs heart surgery
- Not having to step over diseased beggars in the streets (i.e. Medicaid) </ul> If we could get all that for a 20% income tax rate, that sounds like a fair deal, right? Wouldn't it be great if you income tax rate were 20%? Except that the average federal tax rate for people with taxes to pay is currently less than 13%. That's right. The 'Tea Party' folks are pitching a fit over the 'unfair' average tax rate (not including the people with no taxes to pay) of less than 13%. Source: www.taxfoundation.org (retrieved on March 29, 2010)