File photo taken in 2014 shows the Washington, D.C. headquarters of the Internal Revenue Service (IRS).(Photo: J. David Ake, AP)
Six days after the tax filing deadline of April 18, Americans will be free –<span style="color: Red;">*</span>free of working to pay<span style="color: Red;">*</span>their share of the national tax burden for the year.
April 24 marks<span style="color: Red;">*</span>
Tax Freedom Day, the day people in the United States are<span style="color: Red;">*</span>collectively<span style="color: Red;">*</span>done working toward the nation’s tax burden, according to the Tax Foundation, a tax policy research organization based in Washington. Bottom line: it's the day<span style="color: Red;">*</span>the U.S. has earned enough income to pay its taxes - at least in theory.
This year's freedom day falls a<span style="color: Red;">*</span>day before it fell last year, and that’s because of lower tax collections as a proportion of the economy, the foundation says.
By then,<span style="color: Red;">*</span>Americans will have contributed<span style="color: Red;">*</span>114 days of work to collectively pay for the nation's tax burden. <span style="color: Red;">*</span>Broken down, that works out to<span style="color: Red;">*</span>46 days toward<span style="color: Red;">*</span>federal, state and local individual income taxes, 26 days for payroll taxes, 15 days for<span style="color: Red;">*</span>sales and excise taxes, 11 days for property taxes, nine days for corporate income taxes and seven days for estate and inheritance taxes, customs duties and other taxes, according to the foundation.
All told, Americans will pay $3.3 trillion in federal taxes this year and $1.6 trillion in state and local taxes, the foundation says.
“Tax Freedom Day gives us a vivid representation of how much federal, state and local tax revenue is collected each year to pay for government goods and services,” Scott Greenberg, Tax Foundation analyst, said in a statement. “Arguments can be made that the tax bill is too high or too low, but in order to have an honest discussion, it’s important for taxpayers to understand the cost of government."
Over time, Tax Freedom Day has<span style="color: Red;">*</span>moved<span style="color: Red;">*</span>further back in the year, meaning that taxes take<span style="color: Red;">*</span>up a larger chunk of the nation’s income and hold<span style="color: Red;">*</span>back the economy, said<span style="color: Red;">*</span>Mike Patton, a financial planner, estate planner, tax specialist and mutual fund counselor who contributes to
Forbes. With more money going to taxes, there is less capital around for investment in the private sector, Patton writes.
Individual states will reach their tax freedom on varying dates, according to the Tax Foundation. Mississippi reached the finish line first, on April 5, meaning residents bear<span style="color: Red;">*</span>the lowest average tax burden. Connecticut will be the last state to finish, on May 21, the foundation reports.
USA TODAY
What states' residents pay the highest taxes?
Powered By WizardRSS.com |
Full Text RSS Feed
