Tax Freedom Day Five Days Later than Last Year
April 8, 2013
Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. As taxes have increased over the last year, this year's Tax Freedom Day is April 18 -- five days later than last year, say William McBride, Kyle Pomerleau and Elizabeth Malm of the Tax Foundation.
- Tax Freedom Day is calculated using federal budget projections, data from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis.
- In 2013, Americans will pay $2.76 trillion in federal taxes and $1.45 trillion in state taxes for a total tax bill of $4.22 trillion.
- The total tax bill represents 29.4 percent of total income. April 18 is 29.4 percent into the year.
Tax Freedom Day is later this year because taxes are higher due in part to the fiscal cliff deal that raised federal taxes on individual income and payroll. The Affordable Care Act also implements an investment tax and an excise tax that went into effect, pushing the date back further.
- On average, an American spends 32 days paying the federal individual income tax, eight days paying state and local individual income taxes, 24 days paying federal social insurance taxes, three hours paying state and local social insurance taxes, two days paying federal excise taxes, 12 days paying state and local sales and excise taxes, 12 days paying property taxes, 8 days paying federal corporate income taxes, one day paying state and local corporate income taxes, three days paying other federal taxes, and three days paying other state and local taxes.
- In 1900, Tax Freedom Day was on January 22 and in 2000 -- the latest ever Tax Freedom Day -- was on May 1.
Source: William McBride, Kyle Pomerleau and Elizabeth Malm, "Tax Freedom Day 2013 is April 18, Five Days Later than Last Year," Tax Foundation, April 2, 2013.
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