Think you finished with paying your taxes on April 17 this year? Think again. Today is actually the day when the average American finally pays off his taxes for 2007.
Today is Tax Freedom Day. In other words, if the average American began working to pay taxes on January 1 and did not work for himself until all taxes were paid, he would be finished today, according to the Tax Foundation.
Tax Freedom Day has been coming later and later over the last century. In 1913, the year the federal income tax was introduced, Tax Freedom Day was January 30. In 2006, it was April 28.
Not surprisingly, the federal income tax bears the greatest responsibility for Tax Freedom Day’s goose-step through the calendar. The average American worked 33 days this year–more than a month–just to pay his federal income taxes. He worked nearly as long–29 days–to pay federal social insurance (e.g., Social Security) taxes. In other words, the average American labored until March 3 just to pay those two taxes. Then he spent almost as long to pay off the rest of his taxes–including corporate income taxes (14 days), sales and excise taxes (16 days), property taxes (12 days).
Congratulations! You made it through the tax gauntlet. Now you can start working to pay for government regulation! That ought to keep you busy till July.