America to Pay Its Tax Bill on April 24
April 23, 2015
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. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation's income. In 2015, Americans will pay:
- Some $3.3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.8 trillion, or 31 percent of the nation's income.
- Tax Freedom Day is one day later than last year due mainly to the country's continued steady economic growth, which is expected to boost tax revenue especially from the corporate, payroll, and individual income tax.
- Americans will collectively spend more on taxes in 2015 than they will on food, clothing, and housing combined.
- If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later on May 8.
- Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation's tax burden.
This year's Tax Freedom day comes one day later than it did last year and four days later than in 2013. Why? It is mainly to the country's continued steady economic growth. Higher wages and corporate profits are expected to boost tax revenue from the corporate, payroll, and individual income taxes.
Source: Kyle Pomerleau, "Tax Freedom Day® 2015 Is April 24th," Tax Foundation, March 30, 2015.
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