By — Paul Solman Paul Solman Leave your feedback Share Copy URL https://www.pbs.org/newshour/arts/making-sense-are-taxes-lower-now-than-the-1950s Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Making Sense: Are Taxes Lower Now Than the 1950s? Arts May 12, 2011 11:44 AM EDT Paul Solman answers questions from NewsHour viewers and web users on business and economic news most days on his Making Sen$e page. Here’s Thursday’s query: Name: Peter Anderheggen Question: I recently heard that in 2011, the nation, on the whole, is paying substantially less in taxes than it did in the 1950s. I do not know if this is true or just a spin. Paul Solman: Depends what you mean. As the economy has grown, so has the absolute amount of taxes, and even the amount adjusted for inflation. So no, we’re not paying less; we’re paying more. But relative to a year’s worth of economic output (GDP), government revenues have remained pretty constant, and with the tax cuts of the last decade, are now actually lower, as a share of GDP, than at any time since 1950. This entry is cross-posted on the Making Sen$e page, where correspondent Paul Solman answers your economic and business questions _Follow Paul on Twitter._ We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now By — Paul Solman Paul Solman Paul Solman has been a correspondent for the PBS News Hour since 1985, mainly covering business and economics. @paulsolman
Paul Solman answers questions from NewsHour viewers and web users on business and economic news most days on his Making Sen$e page. Here’s Thursday’s query: Name: Peter Anderheggen Question: I recently heard that in 2011, the nation, on the whole, is paying substantially less in taxes than it did in the 1950s. I do not know if this is true or just a spin. Paul Solman: Depends what you mean. As the economy has grown, so has the absolute amount of taxes, and even the amount adjusted for inflation. So no, we’re not paying less; we’re paying more. But relative to a year’s worth of economic output (GDP), government revenues have remained pretty constant, and with the tax cuts of the last decade, are now actually lower, as a share of GDP, than at any time since 1950. This entry is cross-posted on the Making Sen$e page, where correspondent Paul Solman answers your economic and business questions _Follow Paul on Twitter._ We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now