#273. Tax Freedom Day

Tax Freedom Day will arrive on April 9 this year, the 99th day of 2010. That means Americans will work well over three months of the year, from January 1 to April 9, before they have earned enough money to pay this year’s tax obligations at the federal, state, and local levels.Americans will pay more in taxes in 2010 than they spend on food, clothing, and shelter combined.

Tax Freedom Day does not count the deficit even though deficits must eventually be financed. Since World War II, the difference between what governments have taxed and spent has never been as great as during 2009 and 2010. If Americans were required to pay for all government spending this year, they would be working until May 17 before they had earned enough to pay their taxes.

Each state has its own Tax Freedom Day, as residents of different states pay different amounts of state and local taxes, and their federal tax payments can vary dramatically. Residents of Alaska will bear the lowest average tax burden in 2010, working just 85 days until March 26 to reach their Tax Freedom Day. Connecticut residents have the latest Tax Freedom Day, stretching until April 27, 117 days.

In Illinois, we will reach our Tax Freedom Day on April 11, 101 days into the year. Sounds like a good reason to celebrate this weekend!

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