High tax rates mean that only two thirds of the money you earn ends up in your pocket, Heritage Foundation chief economist Stephen Moore reports in the new Index of Culture and Opportunity:
Americans effectively work one day a week to pay federal taxes and the other four days to pay their bills and take care of their families. Taking into account state and local taxes, almost one in three dollars of a worker’s earnings go to the tax collector.
The government also imposes an “invisible tax of lost productivity and output” since “the federal tax code punishes saving, investment and business creation.”
And it will only get worse, according to Moore: “Tax burdens are likely to continue climbing if we do not rein in our rapidly growing debt. Without government spending reductions, taxes will likely rise.”
Be sure to read Heritage’s entire Index of Culture and Opportunity. The Index of Culture and Opportunity tracks key social and economic indicators to determine whether important indicators of opportunity in America are on the right track.
Does this crushing tax burden worry you?