In case you missed it, July 11 was “cost of government” day, the day, theoretically, in which Americans finally pay — from wages, profits, interest and other income — for all government spending and regulation for the year. The amounts include every penny the government spends as well as an estimate of the costs each person pays for government regulations.

Seems like a huge burden to bear, huh? But like everything else, there are two sides to the story, as CNN Money reports :

Isolating the cost of regulation without also factoring in the social and economic benefits makes it seem like “it’s money down the drain. It doesn’t begin to make a positive contribution to what is a serious conversation about what the government does and how we should pay for it,” said James Horney, federal fiscal policy director of the liberal Center on Budget and Policy Priorities.

Ok, so maybe Mr. Horney is right. Obviously, there is some benefit to government spending and regulations — but it’s safe to assume there’s waste too, isn’t there? Or do we even need to assume that anymore — isn’t it closer to being a fact than an assumption? Does anyone know the true cost versus benefit of the government? Are we getting a “good deal?”

What’s the point, you may ask? The point is that taxes and associated government costs have a major impact on the state of everyone’s personal finances. It’s our money that funds the government and we have the right and responsibility to see it used effectively. Of course we supposedly assert those rights and responsibilities when we vote, but that issue is for a different blog.

Anyway, we can all rejoice now that we can celebrate cost of government day along with its better-known cousin tax freedom day.— FREE MONEY FINANCE

Study: Government costs half a year of income [CNN Money]

(Photo: zieak.com)

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