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1 Kyle Pomerleau & Lyman Stone, Tax Freedom Day 2014: April 21, Three Days Later than Last Year 1 (2014)

handle is hein.taxfoundation/taxfaayb0001 and id is 1 raw text is: Tax Freedom Day 2014
April 21, Three Days Later Than Last Year
FA  TION
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by Kyle Pomerleau & Lyman Stone
What is Tax Freedom Day®?
Tax Freedom Day is the day when the nation as a whole has earned enough
money to pay its total tax bill for year. A vivid, calendar-based illustration
of the cost of government, Tax Freedom Day divides all federal, state, and
local taxes by the nations income. In 2014, Americans will pay $3.0 trillion
in federal taxes and $1.5 trillion in state taxes, for a total tax bill of $4.5
trillion, or 30.2 percent of income. This year, Tax Freedom Day falls on
April 21, or 111 days into the year.
Why is Tax Freedom Day later this year?
Tax Freedom Day is three days later than last year due mainly to the
continuing economic recovery, which will boost federal tax revenue collected
through the corporate, payroll, and individual income tax.
When is Tax Freedom Day if you include
federal borrowing?
Since 2002, federal expenses have exceeded federal revenues, with the
budget deficit exceeding $1 trillion annually from 2009 to 2012 and over
$800 billion in 2013. In 2014, the deficit will continue to decline to $636
billion. If we include this annual federal borrowing, which represents future
taxes owed, Tax Freedom Day would occur on May 6, 15 days later. The
latest ever deficit-inclusive Tax Freedom Day occurred during World War
II on May 21, 1945.
When is my state's Tax Freedom Day?
The total tax burden borne by residents of different states varies considerably
due to differing state tax policies and because of the progressivity of the
federal tax system. This means a combination of higher-income and higher-
tax states celebrate Tax Freedom Day later: Connecticut (May 9), New
Jersey (May 9), and New York (May 4). Residents of Louisiana will bear
the lowest average tax burden in 2014, with Tax Freedom Day arriving for
them on March 30. Also early are Mississippi (April 2) and South Dakota
(April 4).
How has Tax Freedom Day changed over time?
The latest ever Tax Freedom Day was May 1, 2000, meaning Americans
paid 33.0 percent of their total income in taxes. A century earlier, in 1900,
Americans paid only 5.9 percent of their income in taxes, meaning Tax
Freedom Day came on January 22.
Who calculates Tax Freedom Day?
Tax Foundation economists calculate Tax Freedom Day using federal
budget projections, data from the U.S. Census and the Bureau of Economic
Analysis, and projections of state and local taxes. Tax Freedom Day was
created in 1948 by Florida businessman Dallas Hostetler, who deeded the
concept to the Tax Foundation when he retired in 1971. Tax Freedom
Day by state has been calculated since 1990, when sufficient data became
available. Learn more about Tax Freedom Day at www.taxfoundation.org/
taxfreedomday

January

der ncome Tax
33 Days
Social Insurance
Taxes 27 Days
Fed. Excise Taxes
2 Days
Fed. Corporate
Income Taxes 8 Days
Other Fed.
Taxes 4 Days
State/Local Income
Taxes 9 Days
State/Local Social
Insurance Taxes 3 hours
State/Local Sales
and Excise Taxes
13 Days
Other State/Local
Taxes 3 Days

Tax Freedom Day
April 21

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