Today is “Tax Freedom Day,” the day on which American’s stop working to fund government and start working to fund their own needs and wants.
This is according to the good people at the Tax Foundation, which every year calculates Tax Freedom Day. The date is a national average. In states with high taxes, the day has not yet arrived. In states with relatively low taxes, the day has already come and gone.
Here’s a report excerpt:
Tax Freedom Day arrives three day later in 2011 than it did in 2010, but nearly two weeks earlier than in 2007. This shift toward a lower tax burden since 2007 has been driven by three factors:
• The Great Recession has reduced tax collections even faster than it has reduced income.
• President Obama and the Congress, after a long debate, extended the Bush-era tax cuts for two additional years.
• As part of the extension agreement, the Making Work Pay tax credit was replaced with the 2 percent reduction in the payroll tax.
Despite these tax reductions, Americans will pay more in taxes in 2011 than they will spend on groceries, clothing and shelter combined.