In recognition of Tax Day, we've collected our top ten charts
related to federal taxes. Together, they provide useful context
for the coming debates about how to reduce soaring budget
deficits and reform the tax code. Our first chart, below,
reminds us what taxes pay for: three-fifths of federal spending
goes for national defense, Social Security, and major health
programs like Medicare and Medicaid; the rest goes for safety
net programs, interest on the debt, and a wide variety of other
areas. Our second chart, below, shows that the United States
(including both the federal government and the states) collects
less in taxes as a share of the economy than nearly any other
developed country. The next three charts show some of the
factors that have made the United States a low-tax country. They
include the downward trend in taxes on middle-income families,
the steep drop in federal taxes at the top of the income scale,
and the decline in corporate income tax revenue as a share of
the economy. As our third chart,