Definition

Cost of Government Day (COGD) is the date of the calendar year on which the average American worker has earned enough gross income to pay off his or her share of spending and regulatory burdens imposed by government on the federal, state and local levels.

Cost of Government Day

Cost of Government Day for 2006 is July 12th, a one day increase above last year’s revised date of July 11th. With July 12th as the COGD, working people must toil on average 192.5 days out of the year just to meet all the costs imposed by government. In other words, the cost of government consumes 52.7 percent of national income.

Cost of Government: Trends

Cost of Government Day falls one day later in 2006 compared to 2005’s date. In 2006, the average American will need to work an additional 11.8 days out of the year to pay off his or her cost of government compared to 2000. Slower economic growth, a recession, the war, increased spending and corporate scandals were responsible for the dramatic increase from June 29th in 2000 to as high as July 11th in 2003.

Consistent with historical changes in the index, as the economy began to expand the cost of government declined due to lower levels of spending and higher incomes of workers. However, the drop in the cost of government was short-lived and the index increased back to July 11th in 2005. In 2006, the cost of government increased an additional day and is now at its highest level since 1995. The increasing cost of government while the economy is expanding is unprecedented and should economic growth slow in the future, the index will increase back to the highest ranges recorded.

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