Today is Tax Freedom Day, the day when all your taxes are paid and you can actually start putting some of your own money into your own pocket.
Each year, the Tax Foundation publishes a report, in which they have calculated the date on which the average US taxpayer has worked long enough, to earn enough money, to pay all of his taxes for that year. For obvious reasons, the Tax Foundation refers to this date as Tax Freedom Day.
The Tax Foundation has just reported that in 2011 Tax Freedom Day falls on April 12. In other words, most Americans will work for more than a quarter of this year, to earn enough money to pay all of their taxes for the year.
But, that's not the worst of it. The Tax Foundation points out that this date does not take into consideration the $1.48 trillion budget deficit which will have to eventually be paid. It is based only upon projected incomes and taxes for this year.
The deficit-included date for Tax Freedom, is when Americans would achieve Tax Freedom, if they were required to pay for all government spending this year, including the $1.48 trillion federal budget deficit. If that were the case, then Tax Freedom Day would fall on May 23 (see the Tax Foundation chart). That will certainly push future Tax Freedom Days further into the year.
The Tax Foundation further points out that, "Since 1948, when Tax Freedom Day was first calculated, the difference between what governments are spending and what they're collecting has never been as great as during 2009 and 2010." Of course, as the tremendous costs associated with Obamacare kick in, the deficit will skyrocket, pushing this date even later, in years to come. This should be a wake-up call for all Americans.
If you would like to move Tax Freedom Day up a bit, vote for elected representatives who pledge to hold down spending and to slash programs that are a hand out - not a hand up.
And that's real freedom.