Tax Freedom Day for NJ and CT is 18 Days Later than the Nation’s
(CNSNews.com) – Tax Freedom Day for New Jersey and Connecticut comes on May 9, almost three weeks later than the nation’s Tax Freedom Day of April 21, according to data from the Tax Foundation.
Tax Freedom Day is the day when the workers in the nation, or a state, have earned enough money to pay the taxes that fund the government (state and federal). This year, the total tax burden for U.S. workers is $4.5 trillion -- $3.0 million in federal and $1.5 in state taxes. But the amounts paid per state vary, and the amount of time needed for the workers in those states to toil and pay off Uncle Sam also vary.
“The total tax burden borne by residents of different states varies considerably due to differing state tax policies and because of the progressivity of the federal tax system,” said the Tax Foundation. “This means a combination of higher-income and higher-tax states celebrate Tax Freedom Day later: Connecticut (May 9), New Jersey (May 9), and New York (May 4).”
Along with Connecticut, New Jersey, and New York , which rank in the top five for later Tax Freedom dates, California is ranked fourth (April 30 Tax Freedom Day), and Massachusetts and Minnesota tied for fifth (April 29).
“Residents of Louisiana will bear the lowest average tax burden in 2014, with Tax Freedom Day arriving for them on March 30,” said the foundation. “Also early are Mississippi (April 2) and South Dakota (April 4).” Tennessee, with a Tax Freedom Day on April 5, and Alabama on April 7, join the former states in the bottom five for later Tax Freedom Day dates.
“Tax Foundation 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,” according to the report.
“Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for year,” said the foundation. “Tax Freedom Day divides all federal, state, and local taxes by the nation’s income. In 2014, Americans will pay $3.0 trillion in federal taxes and $1.5 trillion in state taxes, for a total tax bill of $4.5 trillion, or 30.2 percent of income. This year, Tax Freedom Day falls on April 21, or 111 days into the year.”