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Posts Tagged ‘federal budget’

With the conservative Heritage Foundation’s 2010 ranking of Canada as more economically free than the United States, the CIA’s overstatement of Canada’s government intervention in the economy is particularly striking.

From Canada’s Economy section of the CIA’s World Factbook, we see:

GDP (official exchange rate):
$1.335 trillion (2009 est.)

Budget:
revenues: $514.5 billion
expenditures: $547.2 billion (2009 est.)

Government spending is reported to be 41% of Canada’s GDP in 2009.

From the United States‘ Economy page, we see:

GDP (official exchange rate):
$14.43 trillion (2009 est.)

Budget:
revenues: $1.914 trillion
expenditures: $3.615 trillion (2009 est.)

Government spending is reported to be 25% of the United States’ GDP in 2009.

From the official U.S. federal budget numbers for 2009, total spending was $3.518 trillion. The CIA’s estimate was off by less than 3%.

From Canada’s federal budget numbers for 2009, total spending was $237.8 billion or only 17.8% of Canada’s GDP, seven percentage points lower than that of the U.S., with the CIA’s estimate off by more than 200%.

Since both countries have federal governments, and the CIA is reporting the federal budget numbers for the U.S., the same should be true for Canada.

As further evidence the CIA’s data for Canada’s government spending is incorrect, the conservative Heritage Foundation ranked Canada as more economically free than the United States in 2010. If Canada truly had 41% of its GDP tied up in government spending versus 25% for the U.S, how could and why would the Heritage Foundation rank Canada as more economically free?

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Someone, likely influenced by the high excise taxes on products he was consuming, told me that excise taxes were the biggest source of government revenue.

What does the Congressional Budget Office report? From “The Budget and Economic Outlook: Fiscal Years 2010 to 2020,” published on January 2010:

Individual income tax receipts are the largest source of federal revenue, averaging about 45 percent of the total during the past 40 years. Those receipts and receipts from corporate income taxes (which are the third-largest source of revenue) have accounted for most of the historical variation in total revenues, and they account for most of the projected changes in revenues between 2010 and 2020.

It is the assessment of this author, as well as those in the Tax Honesty Movement, that income taxes, as currently structured in the United States, are unlawful. The reasons are best conveyed to most people in this digitalĀ era by the documentary “America: Freedom to Fascism.” I will elaborate on what I find to be the most compelling reasons for its unlawful nature in a future article.

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