Not only do we pay more taxes (9% more) but our household earnings have decreased relative to the tax increases. Since 1961, taxes have increased 2007% (36.5%/yr) whereas household earnings have increased 1562% (28.4%/yr).
As this blog has repeatedly demonstrated, there is a much better, cheaper and fairer way to collect taxes that would spread the burden over many more transactions than are currently taxed. Not only would the burden be spread over a much bigger universe of transactions, but the industry of tax assessment, filing and compliance would disappear.
As noted on the home page: "No tax filing would be required and this simple micro fee on every transaction would eliminate the collection of all other taxes necessary to operate the country."
Our current governments are not going to take on this project. The private sector could, especially the latest generation of technocrats who have the skills to implement a large scale social revolution. As I have demonstrated with incomplete data, we could get our tax burden down to 4.25% per financial transaction. But look at Feige's results with better data access, his team got the transaction tax down to 0.3% per transaction for the US economy based on late 1990's data.
If you have access to the data I am missing, please let me know and I will update my trial.