Cost of Government Represents 61% of U.S. Income – Higher for Pennsylvania

Americans for Tax Reform has a new report on the Cost of Government, finding that Aug. 12 – day 224 of 2009 – is how long it takes Americans to pay for the cost of Government.  They have an easy to find website at

This is calculated by federal spending, state and local government spending, and the cost of complying government regulations; dividing by national income (or for state specific results state income); and then coverting to a percentage of the year.

Amazingly, Cost of Government day is 26 days later than last year.  Much of this increase is due to the massive increase in federal spending – driven by bailouts and the “stimulus” – which takes 111 days worth of national income (21 more than last year).  There were also increases in the cost of state and local government spending and regulatory burden (as a percentage of income).

If you didn’t have time to plan a party, you are in luck, because Pennsylvania’s “Cost of Government Day” isn’t until August 14.  Of course, you are also not so lucky, because Pennsylvania has a higher burden than most of the rest of the country, ranking 40th in cost of government.  Unfortunately, Gov. Rendell thinks that the cost of Pennsylvania government is too low.

The Cost of Government Report also includes informative sections on government employees, interstate migration, TARP, the stimulus, Cap & Trade, and more.