American Tax Freedom Day Today 18 Apr 13

Today (THU) is Tax Freedom Day – the day that Americans will have earned enough money to pay this year’s tax obligations at the federal, state, and local levels. Both higher federal taxes and rebounding incomes contribute to this year’s date, which is five days later than in 2012. But if you factor in the federal budget deficit, in order to pay for all spending in the current year, the government would need to raise an additional $833-billion in taxes, pushing Tax Freedom Day to May 9th. Historically, the date for Tax Freedom Day has fluctuated significantly. The latest-ever nationwide Tax Freedom Day was May 1st, 2000 – meaning that Americans paid one-third of their total income in taxes that year. A century earlier, in 1900, Americans paid only 5.9% of their income in taxes, meaning Tax Freedom Day came on January 22nd.