12“Inthisworldnothingiscertainbutdeathandtaxes.”...BenjaminFranklin“Inthisworldnothingiscertainbutdeathandtaxes.”...BenjaminFranklinFigure1GovernmentRevenueasaPercentageofGDPTable1CentralGovernmentTaxRevenueasaPercentofGDPTheFederalGovernmentTheFederalGovernmentTheFederalGovernmentTheFederalGovernmentTable2ReceiptsoftheFederalGovernment:2001ReceiptsoftheFederalGovernment...TheFederalGovernmentTheFederalGovernmentTheFederalGovernmentTable4SpendingoftheFederalGovernment:2001FederalGovernmentSpending:2001TheFederalGovernmentStateandLocalGovernmentsStateandLocalGovernmentTable5ReceiptsofStateandLocalGovernments:1999StateandLocalGovernmentTable6SpendingofStateandLocalGovernments:1999TAXESANDEFFICIENCYTAXESANDEFFICIENCYTAXESANDEFFICIENCYDeadweightLossesAdministrativeBurdensMarginalTaxRatesversusAverageTaxRatesLump-SumTaxesTAXESANDEQUITYTAXESANDEQUITYBenefitsPrincipleAbility-to-PayPrincipleAbility-to-PayPrincipleAbility-to-PayPrincipleAbility-to-PayPrincipleTable7ThreeTaxSystemsTable8TheBurdenofFederalTaxesCASESTUDY:HorizontalEquityandtheMarriageTaxTaxIncidenceandTaxEquityTaxIncidenceandTaxEquitySummarySummarySummarySummary