One of the most dreaded days of the year is approaching … tax day. Today is an equally significant day known as Tax Freedom Day. According to the Tax Foundation, “Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year.”
In total, Americans will have worked 108 days into the year in order to pay off the country’s tax bill and they will have to work an additional 27 days just to cover the federal deficit. According to the Tax Foundation, “This year, Americans will work five days later than in 2012 to pay all of their taxes. The total tax bill at all levels comes to approximately $4.2 trillion, or 29.4% of their total income,” said McBride. “That means Americans will pay more in taxes in 2013 than they will spend on food, clothing, and housing combined.”
Some states’ residents may have already hit Tax Freedom day and some may have to wait a few more weeks. When it comes to each state’s own tax freedom day, the report says, “The total tax burden borne by residents of different states varies considerably, due to differing state tax policies and because of the steep progressivity of the federal tax system. This means higher-income states celebrate Tax Freedom Day later: Connecticut (May 13), New York (May 6), and New Jersey (May 4). Residents of Mississippi will bear the lowest average tax burden in 2013, with Tax Freedom Day arriving for them on March 29. Also early are Louisiana (March 29) and Tennessee (April 2).”
The report points out that the later date is in large part due to tax hikes from the fiscal cliff deal and in the Patient Protection and Affordable Care Act. Lawmakers across the country can help workers work more days for themselves rather than for government by implementing solutions that help bring down government spending and help lift the economy rather than drown it.
John Nothdurft is the Director of Government Relations for The Heartland Institute. The 29-year-old national non-profit organization is dedicated to discovering, developing, and promoting free-market solutions to economic and social problems.