Tax Freedom Day (c), that magical day of the year when a majority of Americans have earned enough money to pay their federal, local and state taxes, will come on April 13 this year, or 8 days earlier than in 2008 and two weeks earlier than in 2007, according to the nonpartisan, nonprofit Tax Foundation.
Two thought-provoking factors contributed to this seemingly good news according to the Tax Foundation: (1) the recession has reduced tax collections even faster than it has reduced income, and (2) the economic stimulus package includes large temporary tax cuts for 2009 and 2010.
But hold off on the happy dance, because the Tax Foundation also reminds us that during 2009, Americans will still pay more in federal, state and local taxes than they will spend on food, clothing and housing combined.
In fact, even with this year’s early arrival of Tax Freedom Day (c), Americans will have worked 103 days, or about three and a half months just to cover their tax obligations.
In 1900, it took Americans only 22 days to cover their taxes. By 1950, attaining “tax freedom” took 90 days. The worst year in history came in 2000, when it took Americans until May 3, or 123 days to cover their taxes.
In 2000, federal state and local taxes consumed about 33.6 percent of the average American’s income. This year, reports the Tax Foundation, taxes will consume about 28.2 percent of income.
All of this taxing information and more can be found in the Tax Foundation’s report April 13 is Tax Freedom Day (.pdf)
Photo by Scott Olson/Getty Images
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Comments
Being from Denmark, news like this always make me laugh a bit. Most Danes gladly pay around 50% taxes, and those with the highest income (myself including) pay around 65%. Add to that the sales tax of 25% and Tax Freedom Day ends up somewhere in September
That’s a good reason not to move to Denmark.
Talk about a disincentive to work. Geez.
What do the citizens of Denmark get back from their government in return for those very high taxes?
I think we get a lot back….
1. Hospitals are free.
2. Education is free – the governement even gives you a salary while you take your free education.
3. Unemployment and social benefits are very high.
4. Crime is very low – as an example we only have around 50 homicides in Denmark (5.500.000 inhabitants) every year. The police force is virtually incorruptible and will solve more than 95% of those cases.
But i guess you have to have grown up in such a country to really pay yor 65% taxes with a smile on your face
It does make sense for everyone to work together on things like health care – and prescriptions. It saves a lot of money and anguish. Danes and we Canadians spend half as much as Americans on health care and get get better care on the average. I think the attitude comes from pioneering days. In the Canadian west, people were busy building cooperatives while Americans were building empires. Or maybe that is just how some wealthy Americans would like you to view your heritage.
You don’t get better care. That’s why people travel -to America- because sometimes the alternative is death.
Bureaucracy + life and death = bad.
That said, college is extremely cheap supposing one has mastered basic English and math. If you haven’t mastered it, the point of going to college is undermined. Not everyone needs a BA… that defeats the point of the degree in the first place. Another reason we’re suddenly seeing a BA/BS as default… college degree inflation, if you will.
There are simply so many myths in the West about college, money and economics that combating it these days seems almost pointless.
::bitter business, finance and economics major::
Unfortunately Americans fail to accept the fact that other countries can be “better off” than us due to the rampant propaganda machine in the US. Study the FACTS. Don’t believe the mass media.