Tax Freedom Day Means Your Money is Your Own

Each year the Tax Foundation, a nonprofit organization based in Washington, D.C., publishes its calculation of what it calls Tax Freedom Day. Tax Freedom Day is the day on which, if you were to give every dollar you had earned since January 1 to the government, you would finally have paid all of your income taxes and the rest of the money you earn would be yours to do with as you see fit.

The official Tax Freedom Day this year, based on the average taxpayer paying federal and state income taxes, was May 3, 2001. The actual Tax Freedom Day varies by state, since each state has different rules and rates for income tax, and the state in which you live can affect the federal taxes that you pay as well.

Connecticut, for example, has the highest state income tax burden in the country and as a result won't celebrate Tax Freedom Day 2001 until May 25. Residents of other states have already passed their Tax Freedom Day. Check to see when you can call your income your own on the Tax Freedom Day by State chart.

At the Tax Foundation's Web site you can study a breakdown of how tax dollars are spent and how many days you must work to pay for each facet of the federal budget.

You may like these other stories...

Regulators struggle with conflicts in credit ratings and auditsThe Public Company Accounting Oversight Board (PCAOB), which was created by the Sarbanes-Oxley Act in 2002, released its third annual report on audits of...
Could the IRS disallow Ice Bucket Challenge charitable contributions?Unless you’ve been living under a rock, you’ve probably heard of – or participated in – the ALS Ice Bucket Challenge.I was...
As a general rule, a taxpayer can deduct the full amount of monetary contributions made to a qualified charitable organization, as long as certain substantiation requirements are met. These donations are typically made...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.