Ever feel like your hard-earned paycheck is going to someone else?
That had been the case until Thursday. This year, Tax Freedom Day, as it’s known, falls on April 19, according to the Tax Foundation. It’s the date when Americans have earned enough money to collectively cover their 2018 tax bill. It’s 109 days if you’re doing the math.
The tax-policy research group has been tracking this annual occurrence since 1971.
The date — it’s three days earlier than last year — is attributed to the new tax law that reduced individual and corporate income taxes beginning in 2018.
(Click on chart below to enlarge.)
In 2018, Americans will pay an estimated $3.39 trillion in federal taxes and $1.8 trillion in local taxes, according to the Tax Foundation. That totals $5.19 trillion, which represents 30 percent of national income.
That share, while disturbing to some taxpayers, is lower than when the calendar flipped to the new millennium.
In 2000, U.S. taxpayers collectively forked over 33 percent of their income to Uncle Sam. That year, Tax Freedom Day was May 1, the latest it’s been since the Tax Foundation has been tracking the date.
Fun historical fact: A century earlier, in 1900, Americans paid just 5.9 percent of their income in taxes and reached Tax Freedom Day on Jan 22.
While April 19 is the national Tax Freedom Day this year, there’s huge variance when any individual will reach that point. Generally speaking, the more you earn, the longer you work into the year before getting there.
Where you live makes a difference, as well. For instance, in Louisiana and Alaska (which tied for first), residents marked Tax Freedom Day on April 4. Alabama, Oklahoma and Tennessee tied for second with a date of April 5.