If you filed your taxes by April 15, congratulationsyou complied with the law. But you are not free yet. Tax Freedom Day does not roll around until May 9 this year.
Tax Freedom Day is the date by which the average workers tax bill would be paid in full if all his or her earnings since January 1 went exclusively to pay taxes. In other words, Americans work the first 35% of the year to pay governments bills; they work the rest of the year to meet their own and their families needs.
The chart shows the progression of Tax Freedom Day since 1980. For five consecutive years, Americans have worked more days to pay their taxes than in the preceding year.
Tax Freedom Day in Michigan is traditionally later than that for the nation as a whole due to Michigans higher-than-average state and local tax burdens. Michigan workers must labor one full day longeruntil May 10than the average U.S. worker to achieve tax freedom in 1997.
Tax Freedom Day is calculated by the Tax Foundation , a Washington, D.C.-based educational group.
Although the average wage earner can pay his or her taxes by giving up all income earned from January 1 until May 9, that pays only for direct government costs. Additional burdens, such as mandates and regulation, consume even more of every paycheck. Average American workers toiled until July 3Cost of Government Daylast year to pay the full cost of government.
Cost of Government Day is tracked by the Americans for Tax Reform Foundation , also located in Washington, D.C.