Salt Report 3616 – The Tax Foundation is a tax policy research organization established in 1937. Their Tax Freedom Day study calculates the date when Americans finally start earning money for themselves as opposed to paying federal and state taxes.
“Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income. In 2015, Americans will pay $3.28 trillion in federal taxes and $1.57 trillion in state and local taxes, for a total tax bill of $4.85 trillion, or 31 percent of national income. This year, Tax Freedom Day falls on April 24, or 114 days into the year. ”
The latest Tax Freedom Day was May 1, 2000 (33% of national income). Last year 2014 Tax Freedom Day was April 21. In 1900 Tax Freedom Day was on January 22 (5.9% of national income).