Tax Freedom Day arrived on Tuesday, April 12 this year — Americans worked for the first 102 days of 2011 just to earn enough to pay their federal, state, and local taxes.
The date is three days later than in 2010, meaning that taxes across the board have gone up this year, according to the Tax Foundation, which computes Tax Freedom Day each year.
Americans will pay more in taxes this year than on groceries, clothing, and shelter combined, the Foundation noted.
The computation of Tax Freedom Day ignores the budget deficit and figures in only taxes that will actually be collected this year. If the federal government was seeking to collect enough in taxes to finance all of its spending, Tax Freedom Day would not arrive until May 23.
The latest-ever Tax Freedom Day was May 1, 2000.
On top of federal income tax, all but seven states levy an income tax, as do some localities. The Foundation projects that Americans will work 36 days this year to pay those income taxes, plus 22 days to pay for payroll taxes, which fund Social Security and Medicare.
They will also work 15 days to pay sales and excise taxes, 12 days to pay property taxes, and 12 days to cover corporate income taxes.
Due to different state and local tax rates, and differences in average income subject to federal taxes, total tax burdens vary from state to state. This year Americans in 13 states will work more than 102 days to pay their taxes, including Connecticut (122 days), New Jersey (119 days), and New York (114 days).
The lightest tax burden will affect workers in Mississippi (85 days), Tennessee (86 days), and South Carolina (88 days).
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