Federal, state and local taxes — including income, property,
sales and other taxes — consumed 9.2% of all personal income in
2009, the lowest rate since 1950, the Bureau of Economic Analysis
reports. That rate is far below the historic average of 12% for
the last half-century. The overall tax burden hit bottom in
December at 8.8.% of income before rising slightly in the first
three months of 2010.
“The idea that taxes are high right now is pretty much nuts,” says
Michael Ettlinger, head of economic policy at the liberal Center
for American Progress.