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According to the Tax Foundation, Tax Freedom Day will take place on April 9th this year. This means that on Friday, Americans will have earned enough money to solely pay off their total tax bill for 2010. We are required to work 99 days—or 26.89 percent-- of the year for the government while having the remainder of the year to pay for all our necessities. In fact, the Tax Foundation found that,
Americans will pay more taxes in 2010 than they will spend on food, clothing and shelter combined.
The Tax Foundation report does not include the money needed to pay for our yearly deficit. If every penny went directly to the government, it would take working Americans from January 1st to May 17th to pay for this year's government spending.
If Americans were required to pay for all government spending this year, including the $1.3 trillion federal budget deficit, they would be working until May 17 before they had earned enough to pay their taxes—an additional 38 days of work.
The below pie charts break up federal, state and local taxes to show how many days Americans must work in order to pay off certain taxes.
Each state has a different Tax Freedom Day depending on their citizens' income level and tax burdens.
Those states with the latest Tax Freedom Days:
Connecticut- April 27
New Jersey- April 25
New York- April 23
Maryland- April 19
Washington- April 15
Those with the earliest Tax Freedom Days:
Alaska- March 26
Mississippi- March 28
South Dakota- March 29
West Virginia- March 30
The map below enables you to find your states' Tax Freedom Day:
This year's Tax Freedom Day is only one day later than in 2009. However, it is predicted to become significantly later in 2011 when the Bush tax cuts will likely have expired and the death tax is reestablished. In addition, the Tax Foundation estimates that recently passed legislation such as the health care reform bills will delay Tax Freedom Day 2011 by a few days. On Friday, we have one more reason to celebrate, the average American can now devote the rest of the year to being free to spend or donate their hard-earned money in anyway he or she desires.