Are you familiar with Tax Freedom Day? No, it isn’t the day after April 15th. According to the Tax Foundation, it’s the day of the year when the average American has earned enough money to pay for all the income taxes they will accumulate throughout the rest of the year. In 2016, that day will fall on April 24th. Or put another way, if you work during all 52 weeks of the year, more than 16 weeks of your labor are going to the IRS.
According to the Tax Foundation’s annual report, Americans are going to spend a total of $5 trillion on federal, state, and local taxes this year, which amounts to about 31% of our nation’s income. That’s almost $1 trillion more than we spend on food, clothing, and housing put together.
Tax Freedom Day happens to fall one day earlier this year than it did last year, but when you consider our government’s deficit spending, the day lands on May 10th. It also varies from state to state. Tax Freedom Day falls on May 21st in Connecticut, but arrives as soon as April 5th in Missouri.