I came across an interesting study by The Tax Foundation. The 123-page report titled, Who Pays Taxes and Who Receives Government Spending, by Andrew Chamberlain and Gerald Prante, is well worth the reading.

Some highlights…

click on image for enlarged view

I’ve read lots of arguments about who pays the most taxes. Much of that discussion centers on federal income taxes. In that scenario, as a percentage of income, the poor and the wealthy have the smallest burden (not necessarily in that order). As a flat dollar amount, especially when state and local taxes are factored, the wealthy are paying the largest chunk of taxes.

This chart (right) shows the amount (in flat dollars) of government spending per household. The middle class really takes it on the chin. They pay the most per household and receive the least. The Bottom 20 Percent receive the most in federal spending for services, as expected. The Top 20 Percent receive the most in state and local spending for services? Go figure.

Another interesting point the study makes concerns deficit spending and public debt. If households are aware that today’s deficit spending will lead to tomorrow’s tax increases they will save more today to pay future taxes tomorrow. But if households save more today for future taxes, it is effectively as if those future tax hikes have already taken place.

Did you know that the federal government spent $12.4 billion for tax collection and financial management in 2004? Of course not. The bigger argument for tax simplification might be made by state and local government for such services. In 2004, they collectively spent $33.4 billion.

Before the April 7 elections I wrote in a post that I might be the only person in town that thought it was the system, and not the people, at fault for the sorry shape Illinois government (local units included) is in. I now have a mandate to prove that I was right. The overwhelming majority of voters, a whopping 80% in DeKalb, didn’t vote.

Here are the results of the 2009 DeKalb Mayoral Race:
(WITH 37 OF 37 PRECINCTS COUNTED, 22,942 REGISTERED VOTERS)

Total Votes…………….4,717

Kris Povlsen……………2,572
Lynn A. Fazekas…………..953
Paul “Dome” Kallembach…..1,192
Didn’t Vote……………18,225

If I was on the winning side of the elections I’d probably want to proclaim my mandate so I could spend my earned political capital. Low voter turnout, shi’out, those 18,225 folks who stayed home? They’re perfectly happy. Life is good. Pass the tax, please.

Here are the results of the 2005 DeKalb Mayoral Race:
(WITH 37 OF 37 PRECINCTS COUNTED, 21,697 REGISTERED VOTERS)

Total Votes……………..6,012

Frank Van Buer…………..3,578
Greg Sparrow…………….2,425
Write-in Votes………………9
Didn’t Vote…………….15,685

Uh. Oh. If the folks that stayed home are perfectly happy then, using the same argument, Greg Sparrow won that contest as he was the incumbent.

DeKalb gained 1,245 registered voters from 2005 to 2009 and yet 2,540 less of them voted. System error? You bet.

Reasons for it? Not so fast.

Apathy is an obvious consideration but is it the cause or a symptom?
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Polls closed.

Anyone care to make predictions?

Results pending. Follow the comments for updates.