Tax Freedom Day 2009
Special Report - April 13, 2009
Having spent the first 103 days of 2009 earning enough money to pay off all their federal, state, and local taxes, American taxpayers celebrate Tax Freedom Day today. Tax Freedom Day is a project of the Tax Foundation that uses government data on income and taxes to calculate the number of working days that are required for an American to meet all of his or her tax obligations. This year’s April 13th date is eight days earlier than Tax Freedom Day in 2008 and a full two weeks earlier than in 2007. The record earliest Tax Freedom Day was April 12, 1967.
The Tax Foundation gives two explanations for 2009’s earlier date. First, the recession has “reduced tax collections faster even than it has reduced income.” Secondly, “the stimulus package includes large temporary tax cuts for 2009 and 2010.” Still, Americans this year “will pay more in taxes than they will spend on food, clothing and housing combined.” Taxes in 2009 account for 28.2 percent of income.
North Carolinians are slightly better off than average, having celebrated Tax Freedom Day on April 9th after working 99 days to be ranked 25th highest tax burden in the nation. Alaskans are the best off, celebrating March 23rd, while citizens of Connecticut must work until April 30th to pay their record high tax burden.
Income and payroll taxes comprise the bulk of the American tax burden, requiring 38 and 27 days of work respectively. The Tax Foundation also calculates a Tax Freedom Day that includes government deficit spending in the tax number used. This calculation pushes the 2009 date back to May 29, the latest date ever for the deficit-inclusive number.
Copyright © 2009. North Carolina Family Policy Council. All rights reserved.