You’ll be happy to know, well not really, that every single hour that you work from January 1 to April 18, you, my friends, are working to support the government. Which, I’m told, is five days longer than it was last year. So this year it is April 18 that will be Tax Freedom Day, that day when Americans have worked enough to pay all of their federal and state taxes for 2013, a round total of $4.22 Trillion, according to an analysis done by the Tax Foundation.
Americans will pay more than $2.76 Trillion in federal taxes and another $1.45 Trillion in state taxes for 2013, for a grand total of $4.22 Trillion in taxes, or roughly 29 percent of income. April 18 is the 108th day of the year, and it just so happens to be roughly 29percent of the calendar year. According to the Foundation, as incredible as it sounds, Americans will spend more on taxes than they will on food, housing, and clothing ‘combined’ in 2013.
The Tax Foundation has calculated it will take Americans:
-- 32 days to pay for federal individual income taxes;
-- 24 days to pay for federal social insurance taxes;
-- 12 days to pay for state and local sales taxes and excise taxes, as well as property taxes;
-- 8 days to pay for state and local individual income taxes, as well as federal corporate income tax;
-- 3 days to pay for other federal taxes and another three days to pay for other state and local taxes,
-- 2 days to pay for federal excise taxes,
-- 1 day to pay for state and local corporate income taxes,
-- and three hours to pay for state and local social insurance taxes,
Last year’s Tax Freedom Day, April 13, as I said was five days earlier, with the difference this year attributed to increased federal taxes on individual income and payroll as part of the fiscal cliff deal. In addition, investment and excise taxes under Obamacare have also kicked in. Now I there some who may say what’s five days, but they’re probably the one who are made to pony up every year at tax time. But, it’s five less days worth of income that I could spend on my family.
Since 2002, federal expenditures have exceeded income and, as crazy as it sounds, the federal budget deficit has exceeded and mindboggling $1 Trillion annually since 2009, the year our ‘Dear Beloved Leader’ assumed his current role as president. This year, however, it is expected to come down to $833 Billion. If that deficit spending was included in the calculations, then nationwide tax Freedom Day wouldn’t be until May 9. How’s that make you feel?
Tax Freedom Day has also been calculated for individual states since sufficient data first became available in 1990. According to the economists, the day varies, with it falling later in higher-income states, due to the "steep progressivity" of the federal tax system, while lower-income states have earlier dates for the same reason. The latest Tax Freedom Day this year will be May 13 in Connecticut. March 29 was the earliest day, for both Louisiana and Mississippi.
And, not being a economist myself, I can’t help but wonder what sort of impact the fact that there are now nearly 10 Million fewer people in the workforce today than there were when Barry came into office, might have on making me work even more days to support the government. Suppose those 10 Million Americans were all still working, might that make it so I could maybe stop working to support the government a little sooner and I could start working to support myself?
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