Tax Freedom Day® is the amount of time that it takes before taxpayer have earned enough money to pay this years tax obligations at the federal, state and local levels.
Tax Freedom Day for 2011 in the US will be April 12 meaning it will take nearly 3.5 months of work to pay tax obligations for the year. In addition to less revenue and the tax cuts being extended this year there is also a 2% payroll tax cut this year.
Americans will pay more in taxes in 2011 than they will spend on groceries, clothing and shelter combined.
The latest-ever Tax Freedom Day was May 1, 2000. Over a three-year period, the tech bubble had driven employment and wages higher and capital gains sky-high. In combination with the higher tax rates that had been enacted in 1993, these factors caused tax collections to soar unpredictably. The Congressional Budget Office kept raising its revenue forecasts, but each year’s revenue was so much higher than predicted that the government ended up with a surplus.
All but seven states levy some sort of income tax on top of the federal income tax, and some localities do as well. When these are added to the federal income tax burden, income taxes are projected to amount to an average of 36 days’ worth of work for Americans in 2011.
Residents of Mississippi will bear the lowest average tax burden in 2011. Mississippi’s Tax Freedom Day for 2011 March 26. At the other end of the tax burden spectrum are states with comparatively late Tax Freedom Days. The residents of Connecticut will celebrate last, as usual, working until the 122nd day of the year, from January 1 to May 2, before earning enough to pay all their taxes.
The Florida tax freedom date is April 11 1 day prior to the national average. They rank 16th for earliest dates although they are just one of just 7 states without a personal income tax.
Source : Tax Foundation.org
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