Americans for Tax Reform and the Center for Fiscal Accountability recently released its 2009 Cost of Government Day report, and its findings are astonishing. According to the report, Americans paid off their share of the cost of government after working 224 days, on August 12th, nearly an entire month longer than it took to pay for the cost of government last year.
The components used in calculating the cost of government are: days worked to pay for federal spending (111), days worked to pay for state and local spending (49), days worked to pay for federal regulations (42) and days worked to pay for state and local regulations (23). In 2009, 61% of the national income will be consumed by government, 30% designated on federal spending alone.
The author of the study Monika Ciesielska states “the driving factor for this development is that all components of the cost of government – federal spending, state and local spending, and regulations – are now increasing faster than national income, which shrank as a result of the financial crisis in 2008.”
It doesn’t take an economist to figure out that risky federal bailout and spending schemes are bankrupting the national economy and taxpayers are working harder and longer because of it. Moreover, the recent debt and spending plan executed by Governor Culver and Democrats in the state legislature will surely result in piling more taxes on the backs of hardworking Iowa families. Higher taxes will force individuals and businesses out of the state, which will further damage an already weak economy. In fact, the 10 states in America with the highest tax burdens lost approximately 441,000 residents and nearly $13 billion of net income in 2007. Over the last 10 years, those same states lost more than three million residents and $82 billion in income.
House Republicans are committed now more than ever to limit the unsustainable growth of government spending and make government more efficient. House Republicans strongly believe the government must work for the people, not the other way around as is the case today. As has been the case throughout the last year, House Republicans will continue to offer commonsense solutions to save taxpayer dollars and reorganize the way state government is providing services.
The entire 2009 Cost of Government Report can be accessed at: www.costofgovernmentday.org