Federal spending as a share of personal income
OK, looking at federal spending as a share of personal income. It dropped way down after 1993. Why? The effect of the rise in marginal income tax. That rise in marginal rates yielded a central government that was forced to rationalize. Wealthy people no longer saw any gain in more government services.
What happened after 2001? Marginal rates went down. Wealthy people got government services that middle class people paid for.
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