Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management
Brandy Auterson-Hurst:
It’s now time for your money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management, and welcome back, David.
David Nelson:
Thanks for the invite, Brandi. Appreciate it.
Brandy Auterson-Hurst:
So David, with all the recent tax debates, it’s worth asking, how much does the government typically collect?
David Nelson:
It’s a good question, and a lot of the talk right now as I’m sure folks are probably already getting tired of, is whether we’re going to raise taxes, whether we’re going to cut taxes. And when we zoom out and we look at the long-term trends, and the chart that I have today gives people a really nice visual as far as looking at this, we’re going back to the 1930s and we’re looking at the economy. And basically, what we’re looking at here is what the federal government brings in relative to the GDP, so the gross domestic product. And what it shows is a remarkable consistency since World War 2 on tax receipts and how they’ve mostly stayed between say, six and 10% of the GDP, gross domestic product again. The long-term average is right around 7.6. Right now, we’re a little above that. We’re at 8.6. Even with decades of tax cuts, taxes being raised in different administrations, the government’s share of the economic output really hasn’t changed all that much during this period of time.
Brandy Auterson-Hurst:
Okay, so what should we take away from all of this?
David Nelson:
Well, ignore a lot of the noise as far as out there. I think the tax policy, when we look at it, really has less impact than people think pertaining to this. What people I think should be much more concerned about is the growth of the economy, continuing to hire people and seeing that growth as far as the economy. That certainly makes a bigger difference long term.
Brandy Auterson-Hurst:
All right, David. As always, thanks for your insight today.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on OurQuadCities.com.
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This video includes a paid appearance.