Archive for the ‘Tax Freedom’ Category

Runner: Little to celebrate on Tax Freedom Day

There was a very important day last week a day even more significant than when your taxes were due. In California, Tax Freedom Day arrived Friday.

Calculated annually by the Tax Foundation, Tax Freedom Day is the day on which the average Californian has finished earning enough money to pay all of his or her federal, state and local taxes this year.

So, congratulations! Just a mere 110 days into the year (not counting Feb. 29), you finally started working for yourself instead of the government.

But before you break out the champagne, note the following:

n Tax Freedom Day was four days later than last year. It would have been even later had the governor and Legislature succeeded in their efforts to raise car taxes, income taxes and sales taxes.

n Californians must work longer for the government than residents of other states. The average American achieves tax freedom three days earlier than the average Californian. That's one reason many workers leave our state as soon as they retire.

n If taxes were raised high enough to pay for all government spending, California's Tax Freedom Day wouldn't come until May 17.

Tax Freedom Day used to arrive much earlier in the year. According to the Tax Foundation, in the year 1900 Americans paid only 5.9 percent of their income in taxes and Tax Freedom Day was Jan. 22.

Over the years, the sheer number of taxes and their overall cost has grown tremendously. In fact, it's jarring to compare our current taxes to what Californians paid a century ago.

In the early 20th century, Californians paid no sales tax the sales tax was first imposed in 1933 at a rate of 2.5 percent. Today, Californians pay sales tax rates as high as 9.75 percent.

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Runner: Little to celebrate on Tax Freedom Day

Freedom Report: Tax Day Candidate Catch Up – Video

17-04-2012 21:05 4/16/12 - Behind on your taxes? The IRS is going after your passport. Josh recaps the Atascadero Tea Party, introduces congressional candidate Chris Mitchum and breaks down the race for the 5th District SLO County Supervisorial seat.

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Freedom Report: Tax Day Candidate Catch Up - Video

Utah and Tax Freedom Day 2012 – Video

17-04-2012 21:31 Tax Freedom Day is the day in the year when you stop paying the government state local and federal taxes, you actually get to keep the money that you start earning. This year Utah's Tax Freedom Day happens to fall on Tuesday, April 17. Here is the script to the video: ROYCE VAN TASSELL: "Tax Freedom Day is the day in the year when you stop paying the government state local and federal taxes, you actually get to keep the money that you start earning. This year is April 17th. Across the country, because you have different tax rates and the progressivity of the Federal income tax, you have a different tax Freedom Day for each state." VOICE-OVER: Royce Van Tassell with Utah Taxpayers Association says this year Utah's Tax Freedom Day happens to fall on Tuesday, April 17, but it's not always on the same date. VAN TASSELL: "It fluctuates back and forth, it depends on tax collections and how strong the economy is and various changes at the state and local level. Between 2004 and 2007 the state enacted a $440 million income tax cut, and so that obviously is going to push things back a little bit." VOICE-OVER: Tennessee has the earliest Tax Freedom Day this year, on March 31, while Connecticut has the latest on May 5. Charlie Roberts, a public information officer at the Utah State Tax Commission, explains how much Utahns will be paying in taxes this year. CHARLIE ROBERTS: "They will be paying almost $15 billion in federal income employment and the state taxes. And for state taxes ...

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Utah and Tax Freedom Day 2012 - Video

Filed your taxes yet? As of today, you've also worked enough to pay them

If you are among the many people who avoids doing your tax return until the last minute, today is probably one of the most stressful days of the year. (Don't forget to file, or at least request an extension, by midnight tonight.) According to the conservative Tax Foundation, this is also a day for celebration: As of today, April 17, the average American worker has now worked enough in 2012 to pay all of his or her federal, state and local taxes for the year. The group calls the concept Tax Freedom Day, and it comes four days later than it did last year.

Missouri's taxes are lower than average, so Show-Me State residents could have celebrated their tax freedom 10 days ago, on April 7. Illinois residents have to work until April 23 to cover their full tax burden.

Like taxes in general, though, the Tax Freedom Day concept is controversial. The liberal Center on Budget and Policy Priorities points out that 80 percent of American households actually pay less than the "average" burden. It also contends that the very idea of tax "freedom" is flawed:

Few Americans would likely feel more free if Tax Freedom Day came earlier in the year because the federal government stopped providing for national security, ensuring homeland security, conducting food safety inspections, or testing prescription drugs.

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Filed your taxes yet? As of today, you've also worked enough to pay them

Californians work 110 days to pay tax bill

Tax tab:

$2.62T Americans will pay in federal taxes in 2012

$1.42T Americans will pay in state/local taxes in 2012

29.2% Estimated portion of American income as a whole going to taxes

107 Days of work it takes nation to pay 2012 taxes

110 Days of work it takes California to pay 2012 taxes

Source: National Tax Foundation

Tuesday wasn't just the deadline to pay last year''s taxes.

It also marked national Tax Freedom Day the symbolic date by which the Tax Foundation estimates Americans have made enough money to pay off their taxes for 2012.

This year it took 107 days for Americans to earn enough income to meet their federal, state and local tax obligations, according to the annual report by the Tax Foundation, a Washington, D.C.-based nonprofit research group. Thats four more days than it took to foot the tax bill in 2011 and represents about 29.2 percent of the nations total income.

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Californians work 110 days to pay tax bill