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It's April 2, and You're Still Working for the Government

And, according to the Tax Foundation, you'll continue working for the government until April 24, 2015. So, let's see what's going on. On Monday, March 30, the Tax Foundation announced that Tax Freedom Day® 2015 occurs on April 24,or "114 days into the year." It is also one day later than last year.

So what is Tax Freedom Day? The Tax Foundation defines it as:

"Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income. In 2015, Americans will pay $3.28 trillion in federal taxes and $1.57 trillion in state and local taxes, for a total tax bill of $4.85 trillion, or 31 percent of national income. This year, Tax Freedom Day falls on April 24, or 114 days into the year."

We didn't growl about Tax Freedom Day last year, but we growled about it in 2013 as well as in 2012, when it occurred on April 17, which itself was four days later than in 2011. In 2009, the first year of President Obama's first term, Tax Freedom Day occurred on April 13 -- nationally -- or April 16 here in Virginia. Incidentally, that's eight days earlier than it was in 2008, the last year of President Bush's second term.

The report, prepared by Tax Foundation economist Kyle Pomerleau includes the following key findings:

  • "Americans will pay $3.3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.8 trillion, or 31 percent of the nation’s income.
  • "Tax Freedom Day is one day later than last year due mainly to the country’s continued steady economic growth, which is expected to boost tax revenue especially from the corporate, payroll, and individual income tax.
  • "Americans will collectively spend more on taxes in 2015 than they will on food, clothing, and housing combined. (emphasis added)
  • "If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later on May 8.
  • "Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden."

Tax Freedom Day has changed over time. One hundred fifteen years ago -- in 1900 -- it came on January 22. The following graph from the Tax Foundation charges these changes:


Whether you think you are paying too little in taxes or too much, readers of Growls are encouraged to voice their concerns about the taxes they pay to their members of Congress since only they can change America's tax laws. Ask them for their thoughts on tax policy, and how their tax policy will affect economic growth. Contact information is available at Thomas (use left-hand column). Taxpayers living in Virginia's Arlington County, should contact:
  • Senator Mark Warner (D) -  write to him or call (202) 224-2023
  • Senator Tim Kaine (D) -- write to him or call (202) 224-4024
  • Representative Don Beyer (D) -- write to him or call (202) 225-4376.

Ask for a written response. And, tell them ACTA sent you.

Kudos to the Tax Foundation for their continued principled research and analysis of tax policy.

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