Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning CHAPTER 16 The Public Sector Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 2 EXHIBIT 16-1The Growth of Government Expenditures as a Percentage of GDP in the United States, 19292001 Sources: Economic Report of the President, 2002,Table B-79; and Bureau of Economic Analysis,SelectTable.asp?Selected=N, Table 1. Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 3 EXHIBIT 16-2Federal Expenditures, 19702001 Sources: Economic Report of the President, 1975, Table C-65, p. 325, and Economic Report of the President, 2002,Table B-81. Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 4 EXHIBIT 16-3State and Local Government Expenditures, 19702000 Source: U.S. Census Bureau, Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 5 EXHIBIT 16-4Government Expenditures in Other Countries, 2001 Source: OECD Outlook, Dec. 2001,Annex Table 29. Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 6 EXHIBIT 16-5Federal, State, and Local Government Receipts, 2001 Sources: Economic Report of the President, 2002,Table B-81; and Bureau of Economic Analysis,Table 3.3. Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 7 EXHIBIT 16-6The Taxation Burden in Selected Countries, 2001 Source: OECD Outlook, Dec. 2001,Annex Table 29. Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 8 EXHIBIT 16-7The Growth of Taxes in the United States, 19202001 Sources: Economic Report of the President, 2002,Table B-79 and Bureau of Economic Analysis,Tables 1.1 and 3.3. Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 9 EXHIBIT 16-8Federal Individual Income Tax Rate Schedule for a Single Taxpayer, 2001 *Tax calculated at the top of the taxable income brackets. Source: Internal Revenue Service, Publication 17, Your Federal Income Tax, 2001,Tax Rate Schedules, p. 275. Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 10 EXHIBIT 16-9New Federal Income Tax Rate Schedules Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 11 EXHIBIT 16-10The Progressive Income Tax versus a Flat Tax Survey of Economics, 4e / Ch. 16 The Public Sector 2004 South-Western, a division of Thomson Learning 12 EXHIBIT 16-11Majority-Rule Benefit-Cost Analysis of Two Park Projects