On Wednesday, a tax advocacy group called “The Tax Foundation” released an annual report which shows that Americans devote more time to calculating their taxes than budgeting for their housing, clothing and food expenses.
The report revealed April 24th as the date when the country as a whole has made enough money to pay their taxes.
“Tax Freedom Day gives us a vivid representation of how much federal, state, and local tax revenue is collected each year to pay for government goods and services,” Tax Foundation Analyst Scott Greenberg said. “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 the cost of government. Tax Freedom Day helps people relate to that cost.”
Here are more discoveries made in the report:
– In 2016, Americans will devote more time to calculating their taxes than budgeting for clothing, house and food together.
– $1.6 trillion in local and state taxes, and $3.3 trillion worth of federal taxes will be paid by Americans, which totals $5.0 trillion paid to the U.S. Treasury. This averages to 31% of the country’s income.
– Tax Freedom Day comes one day earlier than it did in 2015. This is due to the Protecting America from Tax Hikes Act of 2015, which was legislation that gave permanent tax cuts to many individuals and businesses.
– Those that put annual federal borrowing on their tax return would have Tax Freedom Day occur on May 10th, which is 16 days later. Federal borrowing represents future taxes owed.