Discuss Question 2
2. FISCAL KNOWLEDGE: The size of the federal government is best measured by the amount of total federal taxes.
ANSWER: False – Measuring the size of the federal government is best done by accounting for how much the federal government spends, not how much it collects in revenue, including taxes. Because in recent years the federal government has consistently brought in less revenue than it spends, calculating the size of government by revenue significantly understates the size of government. According to the non-partisan Congressional Budget Office, in fiscal year 2011, based on spending levels, the size of the federal government was about 24% of the economy (GDP).