In 2018, Tax Freedom Day fell on April 19, which was exactly 109 days into the 2018 year.
In very general terms (mathematicians and economists out there please do not hold me accountable for the calculation!) – the calculation takes into account all the federal, state, and local taxes that are due and divides that figure by the nation’s income. Individual as well as payroll, sales and excise, corporate and property taxes are also taken into account.
To put it another way…Every dollar that is officially considered income by the government is counted, and every payment to the government that is officially considered a tax is counted.
For complexity, there are various other tax freedom day calculations available and each state could have their own “freedom” day.
By the way, Colorado’s tax freedom day fell on April 16, 2018.
And different countries have different tax freedom days. For example, the citizens of the Czech Republic have to wait until June 23, 2018 for their day, thus working for 174 days to pay all taxes.
In 2017 the Tax Freedom for Americans fell on April 23 and in 2016 the date was April 24.
According to the site that keeps track of tax freedom day – taxfoundation.org – “In 2018, Americans will pay $3.4 trillion in federal taxes and $1.8 trillion in state and local taxes, for a total bill of $5.2 trillion, or 30 percent of the nation’s income.”
If you are interested in the methodology of the calculation, visit the website.
As an American, if you felt a slight ‘lift’ to your shoulders on April 19 this year, it may have been the relief from the nation’s tax burden on Tax Freedom Day.
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