Tax Freedom Day

The National Tax Freedom day is approaching fast. No I am not talking about the April 15th deadline for filing your personal income tax return. I am not talking about the day that taxes will be abolished (none of us will live long enough to see that day). I am talking about the day that the average taxpayer quits working for the federal, state and local government. The average tax payer will work until April 9th before you have earned enough to pay you annual tax obligations. After the 9th you can finally use your hard earned dollars to pay for your personal expenses and then maybe save a penny or two for the proverbial rainy day. The reality is that we pay more in taxes than we spend on food, clothing and shelter (Per the March 2010 Tax Foundation Special Report).
These calculations do not take into consideration the current year's deficit. If the federal government were to try and collect enough tax revenue to offset the deficit, it would extend Tax Freedom day to May 17 (another 38 days).
The Tax Freedom day takes into consideration all taxes paid at the federal, state and local level. The average American in 2010 works a little over 99 days to pay for taxes:
· 32 days to pay federal, state and local income tax
· 25 days to pay for social insurance taxes
· 15 days for sales and excise taxes
· 12 days to cover property taxes
· 8 days for corporate taxes (taxes passed onto consumers)
· 6 days to cover miscellaneous other taxes
· 12 hours for estate and gift taxes


Happy day for us. Wait until next year when they raise our taxes to pay for the trillions they are short last year and this. Tax freedom day will be later for sure.