Monday, July 16, 2007

Cost of Government Day Justs Keep Getting Later

Cost of Government Day

Definition
Cost of Government Day (COGD) is the date of the calendar year on which the average American worker has earned enough gross income to pay off his or her share of spending and regulatory burdens imposed by government on the federal, state and local levels.

Cost of Government Day 2007
Cost of Government Day for 2007 is July 11th. With July 11th as the COGD, working people must toil on average 192 days out of the year just to meet all the costs imposed by government. In other words, the cost of government consumes 52.6 percent of national income.

Cost of Government: Trends
Cost of Government Day falls two days later in 2007 than last year’s revised date of July 9th. In 2007, the average American will need to work an additional 11 days out of the year to pay off his or her cost of government compared to 2000. Slower economic growth, a recession, the war, Hurricane Katrina, increased spending and corporate scandals were responsible for the dramatic increase from June 29th in 2000 to as high as July 12th in 2005.

Consistent with historical changes in the index, as the economy expanded, the cost of government declined due to lower levels of spending and higher incomes of workers. However, the drop in the cost of government was short lived and the index increased by two days in 2007. The increase in the index is tempered by slowing national income growth despite significant spending growth.

To view the full 2007 Cost of Government Day report and to see how your state ranks in comparison with others, click here:

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