Think you pay a lot in taxes? You actually pay a lot more than you think.
We all feel like we pay a lot of money in taxes, but you probably don’t realize just how much you’re forking over to Uncle Sam.
With tax day approaching, the Tax Foundation has released its annual Tax Freedom Day report. Tax Freedom Day is the day that we as a nation have “earned” enough money to pay for the entire year of federal, state, and local government services. This year, it falls on April 24 — so basically, for nearly four months, you’ve been working entirely for the government.
But that’s not the most maddening detail. The report finds that we spend more on taxes than we do on the basic necessities of food, clothing, and housing.
The Tax Foundation says Americans will pay $4.9 trillion in taxes. By comparison, we spend $4.1 trillion on those three basic necessities.
“Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for year,” the statement reads. “A vivid, calendar-based illustration of the cost of government, Tax Freedom Day divides all federal, state, and local taxes by the nation’s income. In 2014, Americans will pay $3.0 trillion in federal taxes and $1.5 trillion in state taxes, for a total tax bill of $4.5 trillion, or 30.2 percent of income. This year, Tax Freedom Day falls on April 21, or 111 days into the year.
“Why is Tax Freedom Day later this year?” the statement continues. “Tax Freedom Day is three days later than last year due mainly to the country’s continued slow economic recovery, which is expected to boost tax revenue especially from the corporate, payroll, and individual income tax.”