Tax Freedom Day arrives in America

You’re just about done working for Congress for 2013, congrats!

From the Tax Foundation:

“This year, Americans will work five days later than in 2012 to pay all of their taxes. The total tax bill at all levels comes to approximately $4.2 trillion, or 29.4% of their total income,” said McBride. “That means taxpayers will pay more in taxes in 2013 than they will spend on food, clothing, and housing combined.”

Historically, the date for Tax Freedom Day has fluctuated significantly. The latest-ever Tax Freedom Day was May 1, 2000—meaning Americans paid 33.0% of their total income in taxes. A century earlier, in 1900, Americans paid only 5.9% of their income in taxes, meaning Tax Freedom Day came on January 22.

Five major categories of taxes dominate the tax burden. Individual income taxes – including federal, state and local – require 40 days of work. Payroll taxes take another 25 days of work. Sales and excise taxes, mostly state and local, take 13 days to pay off. Property taxes take 12 days, and corporate income taxes take another 9.

Source:

Tax Foundation