it's the future tax rate.
People often ask,
"Captain, why do you look at spending as a percent of GDP instead of revenues as a percent of GDP when looking at overall tax burden?"
Simple, curious Cappy Cappite.
Because no matter what we tell ourselves today, the TRUE tax rate we face is driven by how much we spend, not what we collect at any given point in time in terms of tax revenue. Oh sure, we can postpone the inevitable taxation way into the future (long after current politicians have died and suckered their constituents into voting for them with the money of future chidlren), but do not be fooled, all those precious little social programs, health care programs and other socialist programs, they HAVE to be paid back by tax dollars.
Maybe the taxpayers of today won't pay it (which many politicians are banking on), but SOME taxpayer at SOME POINT IN TIME will.
That is of course unless the US inflates itself out of it or just refuses to pay the Chinese back, but we wouldn't do that now would we?