Tax Day is next week and as you send in your 2017 tax forms, you might be surprised to learn that the nation will still be working to pay this year’s taxes.
Every year the Tax Foundation calculates Tax Freedom Day®, which determines the day the country has earned enough money collectively to pay its total tax bill. The calculation considers all federal, state, and local taxes and divides them by the nation’s income. For 2018, Tax Freedom Day falls on April 19th. So, the average taxpayer will spend 109 days working to pay their taxes.
In another calculation, the Tax Foundation incorporates the federal deficit. When that is included, we will have to work another 17 days; until May 6th, to reach Tax Freedom Day.
The Foundation figures that Americans will spend more on taxes in 2018 than on food, clothing and housing combined.
Take a look at our full report, Have you paid your taxes yet?, which includes the Tax Freedom Day® for each of the seven states where we manage a single state municipal bond fund. Check out the entire 2018 Tax Freedom Day® report to see where Tax Freedom Day® falls for all 50 states.
1The Tax Foundation is a nonpartisan educational organization founded in 1937 to educate taxpayers about sound tax policy and the size of the tax burden borne by Americans at all levels of government. For more information, visit www.taxfoundation.org.
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