Almost all economists agree that high income tax rates impose huge costs on the U.S. economy. Of course, you might have to press “left of the spectrum” economists to hear that admission. But inevitably, those with intellectual integrity will admit the truth while the rest remain in ranks with big government brethren.

Last week’s column discussed the heavy burden the federal tax places on individuals and families. Referencing content from the popular ‘60s song “Taxman,” I discussed how the lyrics proved to be prescient indeed; and, touched on several ways that citizen “… taxpayers tried to cope through the years with the Taxman’s grotesque appetite.”

I also introduced the “Tax Facts" exercise.

Its purpose is to “document your tax reality.”

In Part 1, the objective is initial data collection, during which you recollect personal employment history and approximate annual income. It serves to help you to “ … begin to size … measure what the income tax has done … and without check - will continue to do… to you and your family.”

So, let’s move the ball. (Roll Tide)

The “Tax Facts” exercise:

If you completed Part 1, fetch the worksheet to review your “Tax Facts” data and continue on. If you did not start last week – don’t put it off again. Begin now. Grab paper & pencil.

If you started but did not complete it, do so now. Here again are the formatting guide points:

Draw five vertical lines to create six columns. Add horizontal lines to create rows as you proceed.

Set column headers, from left to right, for: year, job, company, annual gross, tax percentage and net income. (This is the basic starter matrix. You can add other columns later, as I do in special seminars.)

Beginning with your first job (full or part time), record each job title and company name. Example: If you were Jay Leno in 1968, you would write, “Crew Member, McDonalds.” (That’s a fact!)

If you held multiple jobs at different companies during any one year use that number of row entries. Continue through to present job and company. For longer-term employment (since this is the basic starter matrix), any one entry can represent a career segment. For example, (AWOL) incumbent Fred Risser would write, “1962-2011, State Senator, Wisconsin.”

Record gross salary at each job using your last salary data.

Enter your current tax rate percentage to get into the tax ballpark.

Now, you’re ready to move forward to Part 2 of the “Tax Facts” exercise.

Do these steps:

First, draw 2 more vertical lines to create 3 additional columns on your Worksheet.

Second, identify the new column headers as Est. Tax (High) and Est. Tax (Low/ Notes).

Third, add a new bottom row for "Column Totals."

Fourth, grab a calculator or do it the old fashioned way … in your head. Add all row entries in the column titled, “annual gross.” Record the sum total on the new bottom row of that column.

Fifth, multiply the “Annual Gross Column Total” by your current tax rate percentage (present job). Record the result on the bottom row in the new column, “Est. Tax (High).”

At this point, you are now in the tax ballpark … though almost certainly on the high side. In other words, in this initial data collect exercise you have recorded only estimates of what has been taken by the federal government via the IRS administered federal income tax system. Remember, you have not accounted for any other taxes withheld automatically from your earnings including payroll taxes, state taxes, etc. all of which are before you might pay other taxes, such as property taxes, sales tax, etc. (Note: I urge you to execute a detailed data collect summary worksheet with sub-worksheets to capture all your “tax facts.”)

That said, you are now in a position to do a quick comparison of the impact of your tax rate versus the following historical tax rate information and consider what the difference would mean for you and your family.

Here’s a text snapshot of federal rates for the bottom and top brackets at points in time for your comparison:

In the beginning, 1913-1915, the low bracket rate was 1 percent and the top was 7 percent. By 1921, rates increased to 4 percent (low) and 73 percent (high). In 1943-43, rates went up to 19 percent (low) and 88 percent (high).

In 1951, rates were 20.4 percent and 91 percent. But, in 1964 low and high rates were down to 16 percent and 77 percent.

And in 1982, rates were 12 percent and 50 percent respectively.

You do get the picture, high income tax rates impose huge costs on the U.S. economy.

Now, do the math and calculate the heavy burden the federal income tax places on you and your family.

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Richard Olivastro is president of Olivastro Communications and founder of Citizens for Change. A professional member of the National Speakers Association, he is available pro bono for charitable fundraisers and public forums and can be reached via e-mail at richolivastro@gmail.com or by phone at 1-877-RichSpeaks.