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Tax freedom day8/31/2023 But this new norm in the 1950s meant an additional two months of work to pay the government’s tax burden when compared to just a few decades prior. Taxpayers saw a dramatic improvement in their financial freedom following World War II when overall tax burdens decreased in the 1950s, similar to the trend in the 1920s in the aftermath of World War I. American taxpayers then saw a substantial spike in government spending, deficits, and state power during Franklin Delano Roosevelt’s presidency and World War II. entry into World War I.Īfter a subsequent reduction in federal tax burdens in the 1920s, the trend began to worsen considerably and hastened in the 1930s. Wilson ushered in the Revenue Act of 1913 which re-imposed the federal income tax after the ratification of the 16th Amendment, followed soon after by the creation of the Federal Reserve in late 1913, and both led the way for deficit financing that enabled U.S. Notice how the date of Tax Freedom Day correlates with significant expansions of government since 1900, especially when considering the deficit-inclusive figures:įocusing on Deficit-Inclusive Tax Freedom Day, economic liberty in America shifted abruptly in favor of the government while Woodrow Wilson was president. The cost of the federal government has surpassed its tax revenues since 2002, racking up budget deficits exceeding $1 trillion annually from 2009 to 2012.Īccording to the Tax Foundation’s data, Tax Freedom Day has changed dramatically over the past century. The federal deficit is expected to shrink by $45 billion to $612 billion in calendar year 2017, but the track record over the past few decades is not comforting. To put this year’s total tax burden into perspective, the latest date for Deficit-Inclusive Tax Freedom Day took place during World War II almost three weeks later than this year’s date, occurring on May 25, 1945.Īmericans will collectively pay close to $1 trillion more for taxes than will be spent on essentials like food, clothing, and housing combined. If you include federal borrowing, which represents future taxes the government must collect to pay the bills, Tax Freedom Day would occur 14 days later this year on May 7. In 2017, it will take 113 days for taxpayers to pay the country’s tax burden, which includes $1.5 trillion in local and state taxes and $3.5 trillion in federal taxes, equaling 31 percent of America’s income. That day, calculated annually, represents how long Americans work to pay local, state, and federal taxes for the year. Taxpayers won’t pay off this year’s local, state, and federal tax burden totaling $5.1 trillion until April 23, or as the Tax Foundation calls it, Tax Freedom Day. Tax Day 2017 has passed for individual taxpayers, but America’s tax bill is still due, and it’s a big one.Īmericans will collectively pay close to $1 trillion more on taxes than will be spent on essentials like food, clothing, and housing combined.
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