Shocking, but not surprising when you do the numbers. The Tax Foundation has released its annual report on what it calls "Tax Freedom Day," the day of the year when Americans have collectively earned enough money to meet their tax obligations for the year. This year it falls on April 24, which is one day earlier than last year!
Other key findings from the report:
- This year, Tax Freedom Day falls on April 24, or 114 days into the year (excluding Leap Day).
- Americans will pay $3.3 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total bill of almost $5.0 trillion, or 31 percent of the nation’s income.
- Tax Freedom Day is one day earlier than last year, due to slightly lower federal tax collections as a proportion of the economy.
- Americans will collectively spend more on taxes in 2016 than they will on food, clothing, and housing combined.
- If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 16 days later, on May 10.
- 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.
Yes, you read that right. Americans will spend more on taxes in 2016 than they will on food, clothing and housing combined. So remember that the next time you are looking at your bank account.