Think that you are working to earn a living for you and your family? Think again. Since 2012 began, you have worked each and every day as a slave to the government. In fact, you will have to work until April 17th to earn enough to pay off the combined 29.2% federal, state, and local tax bill. This date – April 17th – is also known as Tax Freedom Day. This year it arrived four days later than last year.
To put some things into perspective … in 1900, Tax Freedom Day came on January 22nd when Americans paid just 5.9% of their income in federal, state and local taxes. Fast-forward to 2012, if our imperial federal government raised taxes enough to close the budget deficit, Tax Freedom Day wouldn’t come until May 14th. When Barack Obama assumed the throne in 2009, Tax Freedom Day was on April 10th.
Tax Freedom Day technically comes on different days depending on the level of tax burden imposed by your state and local municipalities. Any guesses as to which state has the lowest tax burden, and therefore the earliest Tax Freedom Day? Tennessee on March 31st.
Politicians realized long ago that the tax code could be used as a tool of social manipulation. It could be used to promise things to the moochers and punish the achievers. It could be used to favor certain industries and bog down others into paper-work obscurity. Even our own commissioner of the IRS, Douglas Shulman says that our tax code “absolutely” needs to be simplified.