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Chapter 16
Government Taxation
and Expenditure
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Government’s Share of the Economy
Has Grown Sharply in This Century
T-118
Figure 16-1
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Government Spending Is Highest in
High-Income Lands
T-119
Figure 16-2
S urce,International Monetary Fund,
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State and Local Governments
Concentrate on Local Public Goods
T-120
Figure 16-3
Source,U.S,Bur au of the Census,1989-1990,
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Progressive,Proportional,and
Regressive Taxes
T-121
Figure 16-4
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History of Top Marginal Tax Rate
in the United States
T-122
Figure 16-5
Source,U.S,Department of the Tr asury,
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Property and Sales Taxes Dominate
at State and Local Levels
T-123
Figure 16-6
Source:U.S,Bu eau of the Census,
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Response of Work to Taxes
Depends on Shape of Supply Curve
T-124
Figure 16-7
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Who Pays the Taxes and Who
Benefits from Transfers?
T-125
Figure 16-8
Source,Don Fullerton and Diane Lim Rogers,Who Bears the Lifetime Tax Burden,(Brookings Institution,
Washington,D.C.,1993),p,123,
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The Laffer Curve
T-126
Figure 16-9