Tax Freedom Day Is April 18 This Year
Tax Freedom Day, when Americans have earned enough money to pay all their taxes for the year, will fall on April 18 in 2013 — five days later than last year. According to the Tax Foundation, which does the calculations to determine Tax Freedom Day, the date is later this year “due mainly to the fiscal cliff deal that raised federal taxes on individual income and payroll. Additionally, the Affordable Care Act’s investment tax and excise tax went into effect.” Americans will pay more than $2.76 trillion in federal taxes and $1.45 trillion in state taxes for 2013. That’s more than they will spend on food, housing, and clothing combined. From Jan. 1 to April 18 is 108 days or 29.4 percent into the year. The Tax Foundation, with numbers of days rounded, disclosed that it will take Americans: The tax burden borne by residents of different states varies considerably due to different state tax policies and the progressivity of the federal tax system. Higher-income states celebrate Tax Freedom Day later — Connecticut on May 13, New York on May 6, and New Jersey on May 4. Tax Freedom Day for residents of Mississippi and Louisiana arrived on March 29. The latest-ever Tax Freedom Day for the nation was May 1, 2000, when Americans paid 33 percent of their total income in taxes. The Tax Foundation also notes that if annual federal borrowing to fill the budget deficit, which represents future taxes owed, is included in the calculations, Tax Freedom Day would come on May 9 this year. The latest-ever deficit-inclusive Tax Freedom Day came on May 21, 1945, during World War II. © Newsmax. All rights reserved. To subscribe or visit go to: http://www.newsmax.com |