The surplus and deficit of selected countries by share of Gross Domestic Product
Fiscal Health and the New Stimulus Package-Draft
Published Tuesday, January 13th, 2009
The new Stimulus Package has received some criticism and some praise, especially for the tax cuts. The package will include a $500 tax cut for middle-class workers or $1,000 for families, mainly in the form of reduced withholding taxes in paychecks. President-Elect Obama says 95% of working families would get help. Plus, there is an incentive of $3,000, for employers who retain or hire more workers.
Today, the United States has the world’s largest deficit as a share of GDP. Currently the average number of US hours worked has reached 1797 hours, with Korea topping the list at 2357 hours annually. We are taxed on those hours up to 41.4%, which is average for most developed nations. Corporations are taxed at 39.3% which is the world’s second highest, Japan is the highest at 39.5%. Revenue from these and other receipts add up to 25.5% of our nation’s Gross Domestic Product; the third lowest of developed countries.
Organization for Economic Cooperation and Development: Economic Development - http://www.oecd.org/topic/0,3373,en_2649_37443_1_1_1_1_37443,00.html
Two objectives of budgetary policy are an efficient allocation of resources subject to a fair distribution of income and a stable macroeconomic environment. The OECD pursues empirical analysis to underpin budgetary policy recommendations in both these areas.
The Federal Reserve Education - http://www.federalreserveeducation.org/FRED/?CFID=1495634&CFTOKEN=32117226
Here you can find links to instructional materials and tools that can increase your understanding of the Federal Reserve, economics and financial education. All of the Fed web sites, curriculum, newsletters, booklets and other resources are free.