America Will Work Three Days Less to Pay Taxes in 2008 than in 2007; Stimulus Rebates Push Date of Celebration Up
Tax Freedom Day® will fall on April 23 in 2008, according to the Tax Foundation’s annual calculation using the latest government data on income and taxes. That’s three days earlier than in 2007. Stimulus rebates and a projection of slow growth in 2008 are the principal reasons for the earlier celebration.
According to the latest report “Americans will work longer to pay for government (113 days) than they will for food, clothing and housing combined (108 days). In fact, Americans will work longer to afford federal taxes alone (74 days) than they will to afford housing (60 days). As a group, Americans will also work longer to pay state and local taxes than they will to pay for food.”
Tax Freedom Day® came as soon as April 17th under Ronald Reagan, moved all the way back to May 3rd in President Clinton’s final year, and improved to a recent best of April 16th in 2003 before giving back a number of work days. Residents of Washington and California will have to wait for their day of freedom as both states are in the five highest taxed in the nation, partially because of the high incomes earned. Washington residents will be free on April 29th, and California residents on April 30th. Remember also that lower income Americans individually celebrate an earlier Tax Freedom Day ® than higher income Americans, which can easily find they are working to pay taxes well into May.
You can read the full report and see the methodology used here http://www.taxfoundation.org/files/sr160.pdf .