U.S. tax burden at lowest level since '58

Americans are paying the smallest share of their income for taxes since 1958, a reflection of tax cuts and a weak economy, a USA TODAY analysis finds.

The total tax burden — for all federal, state and local taxes — dropped to 23.6% of income in the first quarter, according to Bureau of Economic Analysis data.

By contrast, individuals spent roughly 27% of income on taxes in the 1970s, 1980s and the 1990s — a rate that would mean $500 billion of extra taxes annually today, one-third of the estimated $1.5 trillion federal deficit this year.

The analysis comes as President Obama and Congress debate whether to cut federal spending, raise taxes or both.

The latest dip in the tax burden came from a Social Security tax cut included in a December budget deal between Democrats and Republicans. It will reduce taxes $100 billion this year.

"We have a 1950s level of taxation and a 21st-century-sized government," says Robert Bixby, executive director of the Concord Coalition, a deficit-reduction advocacy group.

The fall in taxes is almost entirely caused by a weak economy rather than lower rates, says Curtis Dubay of the conservative Heritage Foundation. "It's easy to draw the wrong conclusion," he says.

Federal, state and local government spending hit a $5.6 trillion annual rate in the first quarter. That's the highest ever but, as a share of the economy, slightly below last year.

USA TODAY examined the full range of taxes that individuals pay to all levels of government. That includes income taxes for Medicare, property taxes for schools and gas taxes for roads.

At the national average, a person with an income of $100,000 would pay $23,600 in taxes today vs. $28,700 in 2000 and $27,300 in 1990.

The recession of 2001 and tax cuts championed by President Bush started a decade-long trend of taxing less income. The 2007-09 recession and new tax cuts in Obama's stimulus effort accelerated the change.

The one-year Social Security tax cut reduces the worker's rate from 6.2% to 4.2% — or $2,000 a year on a $100,000 income.

That has boosted the economy short-term, says Chris Christopher, an economist at the IHS consulting firm. "It's helping absorb the cost of higher gas and food prices," he says.

Other findings:

•Taxes per person. Individuals paid taxes at an annual rate of $10,549 per person in the first quarter — about the same as individuals have paid since 1990 when adjusted for inflation. Incomes have grown; tax payments haven't.

•Spending per person. Government spent at an annual rate of $18,086 per person in the first quarter. That's up from $13,552 in 2001, adjusted for inflation. The difference between individual taxes and spending comes from corporate taxes, user fees and borrowing.

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Traffic fatalities fall to lowest level since 1949

Experts say changes in car design and campaigns to create better drivers contributed to the decline in traffic deaths. STORY HIGHLIGHTSExperts cite numerous factors in the dropEmphasis on distracted driving has helped, transportation secretary saysThe recession and high gas prices are also a factorAt the end of 2010, fatalities began to trend back up Washington (CNN) -- The number of traffic fatalities continued its welcomed downward trajectory last year, falling 3% to its lowest levels since 1949, and a 25 percent drop from 2005, according to U.S. Department of Transportation estimates released Friday.

Preliminary figures show that 32,788 people died in traffic accidents last year, down from the 33,808 killed the previous year and significantly below the 43,510 people killed only six years ago, according to the DOT's National Highway Traffic Safety Administration.

Experts attribute the change to a variety of reasons, including changes to cars -- such as vehicle rollover protection -- and programs to change driver behavior -- such as campaigns addressing drunk driving, distracted driving and seat belt use. Laws aimed at young people also likely have had an impact, notably older minimum drinking ages and graduated drivers' licenses.

"I think I'm going to take a little bit of credit here on our two years of really hammering on distracted driving," said Transportation Secretary Ray LaHood. "We're not where we want to be, but we know with good laws and good enforcement, people will put their cell phones down and their Blackberries."

He also gave credit to stricter enforcement of driving laws and drivers taking personal responsibility for their safety.

Traffic fatalities in the United States peaked in 1972, with 54,589 killed, according to the DOT. But the rise and decline of the grim number has numerous peaks and dips, influenced by direct changes such as the national speed limit and indirect causes such as recessions.

In recent history, the most notable change was a 9.7 percent plummet in deaths in 2008. In a report examining that drop, DOT officials gave credit to DOT safety programs, but also noted that the drop coincided with a recession in the economy. The recession, and high unemployment rates among the young workforce, probably had a big impact on travel among young drivers, and it probably accounts for a steep decline in fatalities involving younger people, the DOT said.

The 2010 drop is notable because the decline comes despite an increase in the number of miles driven.

But figures also suggest the downward trend may be at its end. DOT figures show that fatalities declined in the first quarter of the year (down 11.4 percent) and second quarter (down 5 percent) compared for the same quarters the previous year, but increased in the third and fourth quarters, up 1.6 percent and 1.8 percent respectively.

Terry Kline, a professor at the Traffic Safety Institute at Eastern Kentucky University, said so many factors influence crashes that its difficult to assign credit or blame.

"Each one wants to say, 'Yes, it's my program that did it,' but it's very hard to prove," Kline said.

A number of factors are "taking more 16 year olds off the road," which could be having a significant impact on the statistics, he said. In many states, young drivers can only drive with an adult in the car, he said. And the recession and the high cost of cars and gas also are keeping teen-agers from jumping in the driver's seat.

The lack of uniformed police reports makes it difficult to compile reliable statistics, Kline said.

Secretary LaHood said the up-tick in traffic deaths in late 2010 does not portend higher figures this year.

"Absolutely not," he said. "We can never sit back on our laurels. We can never take for granted that people have gotten the message, not when 30-thousand people have lost their lives. So we're going to continue our efforts."

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