Tax Freedom Day Is April 21--3 Days Later Than Last Year
According to the Tax Foundation, Americans will pay $3.0 trillion in federal taxes in 2014, and $1.5 trillion in state taxes, for a total bill of $4.5 trillion. That equals 30.2% of the nation’s income, and is more than Americans will spend on food, clothing, and housing combined this year.
In 2013, Tax Freedom Day was on April 18, three days earlier than this year. Tax Freedom Day is later in 2014 mainly because of “the country’s continued slow economic recovery, which is expected to boost tax revenue especially from the corporate, payroll, and individual income tax,” reported the Tax Foundation.
In 1900, Americans “paid only 5.9% of their income in taxes, meaning Tax Freedom Day came on January 22,” said the foundation. The latest Tax Freedom Day for the nation, so far, was on May 1, 2000, meaning American workers paid 33% of their total income in taxes to the government.
Back in 1932, reported the foundation, Americans “spent 10 days paying federal taxes and 46 days paying state and local taxes. By 1940, Americans worked 33 days to pay each.”
During World War II, increased federal spending and borrowing led to Tax Freedom Day falling in April for the first time, in 1943. “The federal tax burden never returned to pre-war levels,” reported the foundation.