3 Depressing Charts About Your Taxes
Paying taxes is one of the largest financial burdens on Americans. Every year, the country works several months in order to pay its annual tax bill to Uncle Sam. Unfortunately, taxpayers will have to work a few extra days this year.
Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the entire year, including federal, state, and local taxes. This year, Tax Freedom Day is today, or 111 days into 2014, according to the Tax Foundation. This is three days later than in 2013, due mainly to the economy still trying to recover from the financial crisis. Americans are estimated to pay $3 trillion in federal taxes and $1.5 trillion in state taxes this year.
“The latest ever Tax Freedom Day was May 1, 2000, meaning Americans paid 33 percent of their total income in taxes. A century earlier, in 1900, Americans paid only 5.9 percent of their income in taxes, meaning Tax Freedom Day came on January 22,” said the Tax Foundation. Let’s take a look at three charts putting Tax Freedom Day into perspective.