Tax Freedom Day April 25th in Washington State – 41st. State To Get There
Although the taxes are not taken “all at once,” our tax burden in 2014 equals everything you’ve made at your job from January 1 ’til April 25th.
The Tax Foundation, a non-profit organization that monitors and reports on tax-related issues in the United States and has done so since 1937, annually “celebrates” Tax Freedom Day.
According to the Foundation, on average, Americans spend 68 working days salary to pay off their federal, state and local tax bills. Washington state will become the 41st. state to hit the mark, putting us in the TOP TEN for tax liability. If every penny you or I made went to satisfy our total tax debt in Washington state, we would not have any take home from January 1, until April 25th. That’s what the Foundation refers to.
The earliest states to celebrate Tax Freedom Day were Louisiana (March 30) Mississippi (April 2) and South Dakota (April 4). At least be glad you don’t live in New Jersey, Connecticut or New York. They won’t hit Tax Freedom Day until after May 4th!
Some other findings from the Tax Foundation:
- The national Tax Freedom Day is three days later than last year due mainly to the continuing economic recovery, which will boost federal tax revenue collected through the corporate, payroll, and individual income tax.
- Americans will spend more on taxes in 2014 than they will on food, clothing, and housing combined.
- Americans will spend 42 days working to pay off income taxes, 15 days for excise taxes, and 11 days for property taxes. Click here for a full breakdown.
- Americans will pay $3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.5 trillion, or 30.2 percent of the nation’s income.
- If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur on May 6, 15 days later.