This year Tax Freedom Day arrived on Wednesday, April 23, 2008. What is tax freedom day? That is the day that Americans stop working for the government, and start working for themselves. Just think about it, all the money that you have earned up until last Wednesday, went to pay taxes. Not just federal income taxes, but state income taxes, payroll taxes, corporate taxes, sales taxes and property taxes.
Every year The Tax Foundation calculates Tax Freedom Day. They ask “What price is the nation paying for government?” The answer is shocking. Americans pay more for taxes than for food, clothing and housing combined. About 33% of all income goes towards maintaining the government.
Different states have different Tax Freedom Days, depending on the overall income of the State residents, and the State and City tax rates. Residents of Alaska have the earliest tax freedom day. They started working for themselves on March 29. They are followed by Mississippi (April 7), Montana (April 8), West Virginia (April 8), and Alabama (April 9).
Residents of Connecticut will have to wait the longest. Tax Freedom Day doesn’t come for them until May 8! They are followed by New Jersey (May 7), New York (May 5), California (April 30) and Washington (April 29).
For more information on Tax Freedom Day, and to find the date you quit working for the government, check out The Tax Foundation‘s Website.
What do you think? Are Americans paying too much in taxes?