Wyoming to Celebrate Tax Freedom Day
If the federal government were to raise taxes to cover the budget deficit, Tax Freedom Day would not come until May 14th on average for the nation.
There are five categories that mainly dominate the tax burden on Americans. Individual income taxes, including federal, state and local income taxes, require an average of 40 days to pay off. Payroll taxes require another 23 days of work. Sales and excise taxes take an additional 15 days. Property taxes take an additional 12 days of work, and corporate income taxes add 10 days of work on average to pay off.
The date for Tax Freedom Day has varied significantly throughout the years. The latest Tax Freedom Day ever was in 2000 and fell on May 1st. This meant Americans that year paid an average of 33% of their income in taxes.
Each state celebrates Tax Freedom Day based on its own state tax policies and average income. The higher income states celebrate Tax Freedom Day later because they have a higher burden to pay, for example Connecticut will not celebrate Tax Freedom Day until May 5th. States with lower incomes were able to celebrate Tax Freedom Day earlier. Tennessee had the earliest Tax Freedom Day this year celebrating on March 31st.