Tax Freedom Day

tax-freedom-day

Today, you start working for yourself, according to the Tax Foundation’s calculation of Tax Freedom Day 2009 — or, more precisely, here in Kansas, you’ve been working for yourself since April 8th. In Alaska, Tax Freedom Day came on March 23rd. In Connecticut it won’t arrive until April 30th. Among the states, Kansas ranks 30th in tax burden.

As the Tax Foundation explains, “Tax Freedom Day answers the basic question, ‘What price is the nation paying for government?’ An official government figure for total tax collections is divided by the nation’s total income. The answer this year is that taxes will amount to 28.2 percent of our income, and the stretch of 103 days from January 1 to April 13 is 28.2 percent of the year. Income and tax data are then parsed out to the states, yielding 50 state-specific Tax Freedom Days.”

So, what constitutes this tax burden? “Five major categories of tax dominate the tax burden. Individual income taxes, both federal and state, require 38 days’ work. Payroll taxes take another 27 days’ work. Sales and excise taxes, mostly state and local, take 15 days to pay off. Corporate income taxes take 6 days, and property taxes take 12. Americans will log 4 more days to pay other miscellaneous taxes, most notably including motor vehicle license taxes and severance taxes, and about 1 day for estate taxes.”

For a listing of tax burden by state, see the Tax Foundation’s America Celebrates Tax Freedom Day. For the full 8-page report, check here. For more information on the Tax Foundation itself, visit their website.

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Published in: on April 13, 2009 at 4:09 pm  Leave a Comment  

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