The Level of Taxes in the United States, 1940-1997

Publication Date: April 1998

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

In Fiscal Year (FY) 1997, federal receipts as a percent of Gross Domestic Product (GDP) reached their highest level since World War II. However, the peak is not a dramatic one. Indeed, compared to the size of the U.S. economy or compared to incomes, the overall level of federal taxes has remained relatively stable over the past 45 years, generally hovering at just under 20% of Gross Domestic Product (GDP). At the same time, the composition of federal taxes has changed somewhat, generally shifting away from corporate income taxes and excise taxes towards social security taxes.

Recent congressional activity has focused on the general level of taxes; H.J.Res. 111 (Representative Barton) proposes a two-thirds majority be required for legislation that would increase taxes. For additional information on tax limitation proposals, see: A Tax Limitation Amendment: Issues and Options Concerning a Super-majority Requirement. CRS Report 98-368 GOV, by James V. Saturno. For more information on taxes in general, see: Major Tax Issues in the 105th Congress. CRS Issue Brief 98021, by the Taxation and Government Finance Section, Economics Division.