Changes in Total Government Tax Receipts Since 1929

Research Report

Changes in Total Government Tax Receipts Since 1929

Abstract

While federal, state, and local tax receipts have nearly tripled as a percentage of GDP over the last 70 years rising from 9.5 percent in 1929 to 26.2 percent by 2002 the magnitude of the decline in total receipts since 2000 is unmatched since World War II. The figure below shows the growth and change in the different sources of total tax receipts. Most of the growth in receipts occurred between 1929 and the nations entrance into World War II. From the late 1960s through the late 1990s, the level of total government receipts had largely stabilized, remaining between 25 and 27 percent of GDP.

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