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Cost of government - 58% of national income?

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Home » Discuss » Archives » General Discussion: Presidential (Through Nov 2009) Donate to DU
 
filthyrichkleptocrat Donating Member (61 posts) Send PM | Profile | Ignore Tue Dec-13-05 03:38 PM
Original message
Cost of government - 58% of national income?
Is this economist pulling our legs,or what?

Government Growth
Big-picture Report

government spending plus regulation compliance costs mandated by federal, state and local government. You will note the latest year shows the government spending-regulation combination at about 58% of national income (43% spending plus 14.9% regulatory compliance costs).

The current ratio of 58% equates to 6.7 months per year of a worker's income needed to cover government (federal, state, local) spending & regulations - - (5.2 months to cover government spending and another 1.5 months to cover mandated regulatory compliance costs).
http://mwhodges.home.att.net/piechart.htm#chart1

How much does it cost to govern us?

Got contrasting esimates? Please post them here.
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patdem Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-13-05 03:50 PM
Response to Original message
1. First off..it is NOT 6.7 months of income..it is 6.7 months of TAX on
income. I do not want to go back to the bad old days of when grandma ate catfood to survive..no mater what YOU think!
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Jim__ Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-13-05 04:54 PM
Response to Original message
2. regulation compliance costs? I looked at the site and didn't see
Edited on Tue Dec-13-05 04:55 PM by Jim__
how these were computed.

Also, what is the effect on the economy of government benefits to business - e.g road building? And have these benefits been subtracted out of the asserted costs?
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filthyrichkleptocrat Donating Member (61 posts) Send PM | Profile | Ignore Tue Dec-13-05 05:05 PM
Response to Reply #2
3. Economic impact if agencies
I think the government agencies do a cost benefit report on their regulations periodically and thelast one I saw (a few years back) the bottom line on each agency showed a net savings to the taxpayer, so the regulion compliance costs should net out to less than zero.
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Jim__ Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-13-05 05:17 PM
Response to Reply #3
4. Ummmmm....
If the bottom line on each agency showed a net savings to the taxpayer, so the regulion compliance costs should net out to less than zero, why did you add regulation compliance costs when you computed the cost of government: government spending-regulation combination at about 58% of national income (43% spending plus 14.9% regulatory compliance costs) - seems like you should have subtracted it.
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filthyrichkleptocrat Donating Member (61 posts) Send PM | Profile | Ignore Tue Dec-13-05 05:31 PM
Response to Reply #4
5. I copyed pasted and posted.
I am not the author of the grandfather government website.
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