Tax Freedom Day
What is a tax freedom day?
A tax freedom day is the date each year
when the average citizen has earned enough money to pay
all federal taxes, state taxes, and local taxes. For example, a
US tax freedom day is the day when an average American has
earned enough money to pay all federal taxes, state taxes, and
local taxes. A Thailands tax freedom day is likewise the
day when an average Thai has earned enough money to pay all
History of Tax Freedom Day
In 1944 - Tax freedom day was the 90th
According to the Tax Foundation, in 1944,
the average American had to work the first 90 days of the year
(from January 1 to March 30) to pay all taxes (federal taxes,
state taxes, and local taxes) owed to the government. Thus, the
tax freedom day was the 90th day of the year.
In 1964 - Tax freedom day was the
By 1964, the number of days increased to 104
(all the way to April 13). Tax freedom day was then the 104th
day and in 1984 Tax Freedom Day was April 15 (106
In 2000 - Tax freedom day was the 121st
By 2000 the tax freedom day was pushed back
to May 1 (121 days). Tax freedom day retreated back into April
during 2002, primarily as a result of the US recession and the
2001 tax cuts.
However, it does make a big difference where
you live, as state and local tax rates can greatly affect when
your particular Tax Freedom Day occurs. Americans spend more
time working for tax to pay the government than they do
for any other expense.
What is a Tax Foundation?
A Tax Foundation is a nonpartisan, nonprofit
group that provides tax education to tax practitioners and the