It’s getting more expensive these days to live in the land of the free and the home of the brave. Literally. This year, Tax Freedom Day will fall on April 21st. This is three days later than it was last year. For those that don’t know, Tax Freedom Day is the first day of the year in which we have theoretically earned enough income to fund the nation’s tax burden. This includes taxes at all levels of government—local, state, and federal. The amount of taxes paid is staggering. In 2014, Americans will have made enough to pay the $3 trillion in federal taxes and $1.5 trillion in state taxes. According to the Tax Foundation, this is more than Americans will spend on food, clothing, and housing combined! If you live in a high tax state, it’s worse. Connecticut, New Jersey, and New York rank as the worst states when it comes to Tax Freedom Day. California is the fourth worst with Tax Freedom Day falling on April 30th. Oh well, at least the weather is nice.
For more information on Tax Freedom Day, check out www.taxfoundation.org to review the complete analysis. It’s an eye opener.