National Tax Freedom Day Arrives Nearly a Week Later This Year – April 18
Just what is Tax Freedom Day? Read on!
Tax Freedom Day is traditionally the day when Americans have "worked off" their tax debt to the federal government and their wages become their own. Tax Freedom Day dates back to 1948 when it was coined by Florida businessman Dallas Hostetler.
In 1937, the non-profit Tax Foundation had been created by a group of businessmen, civic leaders and citizens. Its job is to monitor, report on, and often lobby on behalf of Americans when it comes to taxes and citizens' rights.
Imagine, hypothetically, if all your taxes for the year had to be paid up front before you get take-home money. This year, Tax Freedom Day arrives nationally April 18, FIVE days later than last year.
The Foundation has compiled data for each state, showing when its own Tax Freedom Day will arrive. Washington's day is April 20; Oregon's is April 15.
April 18 is the day for federal taxes only. According to the Tax Foundation, it's later this year because the Fiscal Cliff deal raised everyone's income taxes and numerous provisions of the Affordable Care Act (Obamacare) have kicked in.
Interestingly, the latest Tax Freedom Day ever was May 1, 2000. That was the result of numerous Clinton-era tax burdens that caught up with Americans that year. Some of the earliest Tax Freedom Days occurred during the two terms of President Reagan.