Are actual spending numbers compared, or is spending expressed as a share of income?
Families and governments alike spend more money when they have higher incomes, so focusing on the raw spending numbers will produce a larger increase over time. For example, the Fraser Institute researchers focus on the average family’s tax bill alone, without comparing it to family’s average income, which produces misleading results. Even if the tax system had not changed at all since 1961 and families still paid 33.5% of their incomes on taxes, the average tax bill would grow as income increases over time. With an average income of $69,175 the average family tax bill would have to be $23,174 just to maintain the same effective tax rate as in 1961. This, according to the Fraser Institute methodology, represents a 1,284% tax bill increase. This trick is commonly used when looking at government spending on whatever program you’d like to see cut (healthcare spending rising out of control, anyone?). It can also be used when looking at the increase of government debt over time. Again, the
