While the deadline for filing state and federal income taxes has come and gone, Americans theoretically won’t have earned enough money to pay them until around the end of April, according to a Tax Foundation study.
The Foundation uses data from the federal government to determine how much money Americans earn each year and compares that amount to the nation’s overall tax burden. Their results:
“Americans will work longer to pay for government (120 days) than they will for food, clothing and housing combined (105 days),” says Tax Foundation President Scott Hodge. “Since 1986 taxes have cost more than these basic necessities. In fact, Americans will work longer to afford federal taxes alone (79 days) than they will to afford housing (62 days).”
Some even say the study doesn’t go far enough. According to those, determining a true tax burden would require knowing not just the amount of federal and state taxes paid, but also accounting for things like property taxes, sales taxes, phone and communication taxes, special district taxes, liquor and cigarette taxes, bridge tolls, and literally hundreds of other hidden taxes.
Source: Chad Morelli, Taxing times – Tax Freedom Day falls on April 30 this year, Suburban Journals, April 30, 2007.
For text: http://suburbanjournals.stltoday.com/articles/2007/04/20/news/sj2tn20070418-0418cvj_taxday.ii1.txt
For study: http://www.taxfoundation.org/taxfreedomday/
For more on Taxes: http://www.ncpa.org/sub/dpd/index.php?Article_Category=20
FMF Policy Bulletin/ 08-05-2007
