Wednesday, January 13, 2010

Fun Facts

The day the average American has earned enough to pay his taxes for the entire year is called Tax Freedom Day. According to the Tax Foundation, 28.2% of income was paid in taxes in 2009. Below is a list showing Tax Freedom Day since 1930 and the percent of income paid in tax that year.

1930 February 12 (11.7%)
1940 March 7 (17.9%)
1950 March 31 (24.6%)
1960 April 11 (27.7%)
1970 April 19 (29.6%)
1980 April 21 (30.4%)
1990 April 21 (30.4%)
2000 May 3 (33.6%)
2001 April 30 (32.6%)
2002 April 19 29.8%)
2003 April 16 (29.0%)
2004 April 17 (29.3%)
2005 April 23 (31.1%)
2006 April 26 (31.7%)
2007 April 26 (31.8%)
2008 April 23 (30.4%)
2009 April 13 (28.2%)

From the chart above, it looks like the government discovered they kill the bloodied taxpayer once Tax Freedom Day moves to late April. It is interesting to note that the Bush tax cuts didn't push back Tax Freedom day much. It may be because the taxing burden was shifted to the states.

The early Tax Freedom Day in 2009 is a result of all the stimulus checks, financed with debt. We'll pay for that eventually, plus interest.

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