Wednesday, May 10, 2006


While the USA's tax filing day (April 17) was nearly a month ago the following statistics are disturbing enough that they are worth reading through anytime during the year (Source: Wall Street Journal, April 15-16, 2006):

  • Tax receipts -- for all levels of government as a percentage of Gross Domestic Product include -- Sweden 50.6%, France 43.4%, UK 35.6%, Germany 35.5%, USA 25.6%, Japan 25.3%, and Mexico 19.1%
  • Tax Audits -- the Internal Revenue Service focused most of its tax audit resources in 2004 on two income tax brackets; $100k to $200k (at 1.41% of all returns being audited) and less than $25,000 (at 1.48%). I think we can safely conclude that if you are among the poorest of America's poor the IRS is watching you very closely -- for what I have no idea, perhaps fearing you will work your way out of poverty!!!???
  • Tax preparers -- the USA has 1.2 million professional tax preparers but only 836,000 doctors. Now this is completely wrong since I clearly need a doctor after I process my paperwork for sending on to my tax preparer.
  • Returns to States -- New Mexico does the best at capturing US federal tax dollars since it gets $2 in federal spending for every dollar paid by New Mexico's residents while New Jersey is dead last since it receives only 55 cents for every $1 in federal taxes paid by its residents. So has this wealth redistribution made New Mexico a wealthy state today? No, it remains one of nation's poorest states.

Dr. Steve Forbes please report to surgery,



jdsqrd said...

Does that 1.2 million only include full time tax preparers or does it include the seasonal ones like a few of the farmers back home who also do tax prep to supplement their income?

Todd said...

According to the WSJ that 1.2 million includes full-time and season tax preparers.

It did not define "doctors" in the article but personally I would like to about 500,000 tax preparers use their talents to become paramedics instead of servants for the IRS -- rural America needs more parademics not tax compliance people.

space beagle