Cost of Government Day (COGD)
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Title: America must call for responsible taxes

Date: July 16, 2003

Source: Lee Davidson, Deseret Morning News

Words: 690

Body:

WASHINGTON -- It is July, meaning more than half the year has passed. It also means typical workers have just now earned enough to pay off all their share of regulatory and tax costs of government -- if they spent no money on anything else.

"Cost of Government Day" this year was July 11, four and a half days later than last year.

The Americans for Tax Reform Foundation figures that date each year based on income, tax and regulatory data. "Working people must toil on average 193 days out of the year just to meet all the costs imposed by government," it said in a new report.

"In other words, the cost of government consumes nearly 53 percent of national income," it said.

America has come far since the George Washington administration enforced the first federal tax -- on whiskey. It led to the "Whiskey Rebellion," where 500 Pennsylvania farmers burned the home of one tax collector and tarred and feathered others. They said the Revolution had been fought to stop such taxes by King George III.

They backed down when an overwhelming army of 13,000 troops was sent against them, and Washington himself traveled to explain to them why the federal government needed money to operate.

In the 209 years since, federal, state and local governments have incrementally increased taxes here and there -- and imposed rules and more rules to govern business and labor operations -- until America has reached the point that more than half of money earned goes to pay for costs of government, according to the foundation.

The Whiskey Rebellion farmers -- and even Washington himself -- would likely be aghast.

Tom Schatz, president of Citizens Against Government Waste, is one who is upset. "Taxpayers should be outraged by the government's ongoing waste of their hard-earned money," he said.

The foundation says that average workers toil 87 days to pay for federal spending; 42.8 days for state and local government spending; 38.6 days to pay for federal regulations; and 24.1 days to pay for state and local regulations.

The study says costs of government are at their highest level since 1993. This year's increase is the third straight -- after eight straight declines from 1992 to 2000.

It said the war in Iraq and Afghanistan drove new federal spending, and state and local governments raised taxes to make up for losses during tough economic times. It said that "new corporate regulations at the federal level also contributed to the increase in the cost of government."

The costs of federal, state and local spending are paid, of course, through taxes. The costs of regulations are paid, it says, through the "hidden taxes" of higher costs for goods resulting from complying with government rules and record keeping.

The private Tax Foundation has figured that Tax Freedom Day -- when average workers earn enough to pay their taxes (not counting higher prices from regulation) -- this year was April 19 nationally. It was slightly earlier in Utah, on April 16, because of somewhat lower-than-average state and local taxes there.

Once the "hidden taxes" of government regulation are added, the Americans for Tax Reform figures the Cost of Government Day is July 11 nationally -- but on July 8 in Utah, again because it says state and local burdens are somewhat lighter than average.

Still, Utah's Cost of Government day is 18th worst among the 50 states -- coming 189 days, or 52 percent of the way into the year.

The worst overall is Connecticut, where Cost of Government Day does not arrive until Aug. 3 (214 days, or 59 percent of the way into the year). The best in the nation is Alaska, where it arrives the earliest: on June 17 (168 days, or 46 percent of the way into the year).

Schatz isn't quite calling for another Whiskey Rebellion, but he says it is time for Americans to call for more responsibility in taxes and regulation.

"Hopefully there will be less wasteful spending and more fiscal responsibility in the future, and next year this (Cost of Government) Day will come much sooner," he said.

Deseret Morning News Washington correspondent Lee Davidson can be reached by e-mail at lee@desnews.com

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