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Matt Collins
04-17-2010, 07:55 PM
"Tax Freedom Day" Late This Year

"Tax Freedom Day" arrived on April 9 this year.

Alas, despite the name, Tax Freedom Day does not celebrate a day when Americans are freed forever from tax slavery. (Libertarians are working on that, though...)

Tax Freedom Day is an attempt to answer this basic question: "What price is the nation paying for government?" It is calculated each year by the Tax Foundation (http://r20.rs6.net/tn.jsp?et=1103298695805&s=57420&e=0016mJsqr4R9qSJqEmRYorlAbxPeyNKkjXIWtiZ9Ng8pjcsl 9Bba0tifIj0slQolfBWMBphRZA3RuzhOFALYtNeXp4QyHS6xTV 782oAxEY8C5YPZe0Iq5DkwrP65dDWi0Sy_rBCwFg5ISA=), a nonpartisan tax research group.

Here's how they do it. They add up the total amount of tax dollars collected by local, state and federal governments. Then they divide that number by the nation's total income.

That calculation tells us that, this year, taxes will devour a whopping 26.89 percent of our income.

And 26.89 percent of the year equals 99 days -- thus making April 9 the day when the average American taxpayer has finally earned enough money to meet the crushing burden of this year's federal, state and local levels taxes.

In other words, in 2010 the average American taxpayer will work well over three months of the year -- from January 1 to April 9 -- just to pay their taxes.

Americans will pay more in taxes in 2010 than they will spend on food, clothing and shelter -- combined.

This year's Tax Freedom Day is one day later than last year. And the Tax Foundation warns us that this year's massive deficit spending means that Tax Freedom Day will be later in years to come.

The Tax Foundation doesn't count deficit spending when calculating Tax Freedom Day. However, they sound this alarm: "Since World War II, the difference between what governments have taxed and spent has never been as great as during 2009 and 2010. If Americans were required to pay for all government spending this year, they would be working until May 17 before they had earned enough to pay their taxes."

Ouch! Well, at least we know the worst now, right? Not so fast. Another group, Americans for Tax Reform (ATR), calculates (http://r20.rs6.net/tn.jsp?et=1103298695805&s=57420&e=0016mJsqr4R9qS6ZpoNDnn-D8SU_05Z-ahLxp5BsMha25T6qCUf5NckfherQTooC--lQhTsiMdwn8Dqu397zFzj7gmYZs2olNaYDyLRGqHbFNmQpFzSQ P54jrD8IUeBYdIYCE6Y-g7BNXJarVa3cLd9eMpvq9m5YVppG7WTNgO0SIo=) "Cost of Government Day" every year. ATR adds up taxation *plus* the cost of government regulations (which function as hidden taxes).

Last year's "Cost of Government Day" didn't arrive until August 12 -- the latest date ever.

We'll let you know this year's figure as soon as it is announced. We are not optimistic.