Americas Tax Freedom Day will arrive on the 116th day of 2006 — Wednesday, April 26. Because of the rising tax payments that accompany economic growth, this year’s Tax Freedom Day is three days later than it was in 2005 and a remarkable 10 days later than it was in 2004, says the Tax Foundation.
Despite the rapid growth of the total tax burden between 2004 and 2006, Tax Freedom Day still shows the effects of the Bush tax cuts in 2001 and 2003. Even as late as April 26, Tax Freedom Day is still celebrated seven days earlier than it was in 2000 when the tax burden reached its peak and Tax Freedom Day was delayed until May 3.
The tax burden will be higher in 2006, says the Tax Foundation, not because of tax increases none have been passed at the federal level recently and none are expected in 2006 but rather because of rapid economic growth expected by most economists to continue through the year.
Source: Curtis S. Dubay and Scott A. Hodge, America Celebrates Tax Freedom Day, Tax Foundation, Special Report No. 140, April 12, 2006.
For text: http://www.taxfoundation.org/taxfreedomday/
For more on Taxes: http://www.ncpa.org/pi/taxes/
FMF Policy Bulletin/ 18 April 2006
