Friday Was Tax Freedom Day 2015
Monday, April 27th, 2015
Friday, the nation as a whole has earned enough money to pay its federal, state, and local tax bill for the year, according to the annual report from the nonpartisan Tax Foundation. After 114 days into 2015, Tax Freedom Day has arrived!
Key takeaways from the report include:
- Americans will pay $3.3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.8 trillion, or 31 percent of the nation’s income.
- Tax Freedom Day is one day later than last year due mainly to the country’s continued steady economic growth, which is expected to boost tax revenue especially from the corporate, payroll, and individual income tax.
- America will collectively spend more on taxes in 2015 than it will on food, clothing, and housing combined.
- If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later on May 8.
“Tax Freedom Day gives us a vivid representation of how much we pay for the goods and services provided by governments at all levels,” said Tax Foundation Economist Kyle Pomerleau. “Arguments can be made that the tax bill is too high or too low, but in order to have an honest discussion, it’s important for taxpayers to understand cost of government. Tax Freedom Day helps people relate to that cost.”
Historically, the date for Tax Freedom Day has fluctuated significantly. The latest-ever Tax Freedom Day was May 1, 2000 – meaning that Americans paid 33% of their collective incomes towards taxes. A century earlier, in 1900, only 5.9% of national income was required to pay the tax bill, and Tax Freedom Day fell January 22.
While the national date arrives nine days after the tax filing deadline, each state’s total federal, state, and local tax burden varies greatly. Tax Freedom Day arrived earliest in Louisiana on April 2 and Mississippi on April 4. On May 13, Connecticut and New Jersey will be the last states to reach Tax Freedom Day this year.
Members of the press, please find full downloadable assets here.
Full report: Tax Freedom Day® 2015