At the beginning of the 20th century, taxes accounted for 5.9 percent of income, and the nation celebrated Tax Freedom Day on January 22.
Today is Tax Freedom Day; that is, today is the day that marks the demarcation of the period worked to pay for federal, state, and local taxes and that where Americans work for themselves. (Yay!)
The report compares the number of days Americans work to pay taxes to the number of days they work to support themselves.
“Despite all the tax cuts that the federal government has passed recently, Americans will still spend more on taxes than they spend on food, clothing and medical care combined,” said Hodge.
In 2005, Americans will work 70 days to afford their federal taxes and 37 more days to afford state and local taxes. Other categories of spending measured in the report include housing and household operation (65 days), health and medical care (52 days), food (31 days), transportation (31 days), recreation (22 days), clothing and accessories (13 days), saving (2 days) and all other (42 days)."Tax Freedom Day to Arrive April 17 in 2005", National Tax Foundation
The full, and quite detailed, report is interesting, but mostly disturbing. Once again, the red staters are like lampreys that have opened up a vein into us blue staters. Sigh.
Overall, the largest importers [of federal tax dollars] are Florida (+$1,478.5 million), Washington (+$1,275.2 million), Virginia (+$1175.8 million) and Georgia (+$999.7 million); and the largest exporters [of federal tax dollars] are California (-$2,686.31.3 million), New York (-$2,076.3 million) and New Jersey (-$1,885.0 million). The District of Columbia is a net tax exporter with -$125.3 million.
So, celebrate the fact that you're working for yourself today. And remember the secrets of success: Be your own boss, run a cash business, and don't extend credit.