Thank goodness it’s TFD
Today is Tax Freedom Day in Ohio, according to Tax Foundation. For a change, it’s good to be below average; Tax Freedom Day nationwide is next Thursday.
Tax Foundation says its economists “calculate Tax Freedom Day using federal budget projections, data from the U.S. Census and the Bureau of Economic Analysis, and projections of state and local taxes.”
The foundation calculates paying individual income taxes at all levels require 40 days of work. Payroll taxes account for another 25 days. Sales and excise taxes take 13 days to pay, followed by property taxes (12 days) and corporate income taxes (9).
“This year, Americans will pay $2.764 trillion in federal taxes and $1.459 trillion in state-local taxes out of $14.366 trillion in income, for a 29.4-percent tax bill,” stated Will McBride, one of those economists. “That means taxpayers will pay more in taxes in 2013 than they will spend on food, clothing, and housing combined.”
Those economists also figured out how much longer Americans would have to work in order to cover the budget deficit. Raising another $833 billion in taxes to avoid the red ink would delay Tax Freedom Day to May 9.
At that rate, also paying off the national debt – now topping $16.8 trillion – would take another 420 days. That means Debt Freedom Day would arrive June 12, 2014.
Tack on another 129 days or so to pay another year’s worth of federal, state and local taxes in full – remember, it would be a new year – and Americans once again could start working for themselves on Oct. 19, 2014. That does not factor in tax hikes sought by president Barack Obama as part of his fiscal year 2014 budget proposal.
It could be worse; Tax Freedom day won’t arrive until August in Hungary and Belgium.