COST OF GOVERNMENT

The average cost of all governments- federal, state, and local- to each man, woman and child in the United States is 4539$ a year. About two-thirds of all taxes collected go to the federal government.

The individual income tax provides the federal government slightly less than half its revenues. A person with an average income pays about 11 per cent of it to the government; those with very large incomes must pay up to 50 per cent. Many states also have their own income taxes. Many other taxes- on property, entertainments, automobiles, etc. - are levied to provide funds for national, state and local governments.

Federal government spending for defence purposes, including military help to other nations, has fallen as a portion of total government expenditures from 58.7 per cent in 1958 to 25.7 per cent in fiscal year 1981. The remaining 74.3 per cent of the federal budget has gone into public welfare programmes, development of water and land resources, public health and education. As a result of the expansion and increased costs of government services, the national debt has increased greatly since World War II.

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