I think that’s a fair point, and it highlights part of the tension here. Total receipts as a share of GDP may be relatively stable, but the structure of taxation and where the burden falls has changed over time.
My point wasn’t that government lacked revenue in aggregate, but that many of the periods people point to as examples of large national projects coincided with higher marginal tax rates on top earners.
The interesting question isn’t just how much is collected, but how the burden is distributed and what tradeoffs people are willing to accept going forward.
My point wasn’t that government lacked revenue in aggregate, but that many of the periods people point to as examples of large national projects coincided with higher marginal tax rates on top earners.
The interesting question isn’t just how much is collected, but how the burden is distributed and what tradeoffs people are willing to accept going forward.