Happy Tax Freedom Day
According to The Tax Foundation, today is Tax Freedom Day. That means that from January 1st until today, the wages earned by the average American went to pay federal state and local taxes. For the last four months, you’ve been working for the government, now it’s time to earn something for yourself.
Tax Freedom DayÂ® will fall on April 30 in 2007, according to the Tax Foundation’s annual calculation using the latest government data on income and taxes.
“Tax freedom will come two days later in 2007 than it did in 2006,” said Tax Foundation President Scott A. Hodge, “and fully 12 days later than in 2003, when tax cuts caused Tax Freedom Day to arrive comparatively early, on April 18.”
However, 2007’s Tax Freedom Day is still slightly arlier than it was in 2000, when the economic boom, the tech bubble and higher tax rates pushed tax burdens to a record high, and Tax Freedom Day was postponed until May 5.
The trend since 1982 is nicely illustrated here:
Given that we now have a Democratic Congress and a President who doesn’t care about fiscal restraint, you can assume that the upward trend evidence since 2002 will continue.