Congratulations, since Jan 1st, 2010, those of us in the top 50% of wage earners have been working for the federal government, but can now start working for ourselves! Every dollar, every cent, you've earned for the past ~100 days is actually the amount you pay to the government each year in taxes!
How do you know this number is 'high' and not just a normal level? How about the fact that Americans will pay more taxes in 2010 than they will spend on food, clothing and shelter combined. Or you could look at our historical tax burden and how it has grown over the years.Tax Freedom Day will arrive on April 9 this year, the 99th day of 2010, according to our annual calculation using the latest government data on income and taxes. Americans will work well over three months of the yearfrom January 1 to April 9before they have earned enough money to pay this year's tax obligations at the federal, state and local levels.
Year TFD Percentage tax burden
1900 January 22 5.90%
1950 March 31 24.60%
2000 May 1 33.00%
2010 April 9 26.90%
Maybe those numbers aren't scary to you... maybe you think it's ok since it has actually gone down in recent years... well, then you're sadly mistaken. This is because you're not adding in the total deficit of the United States... AKA tax burden that you own, but are not yet paying.
The numbers are skewed because today, the American government doesn't think we actually need to pay for all of our benefits. Instead of paying them now, they burden us with future debt WITH INTEREST.
With debt included, we are quickly reaching 50%, so HALF of the year, you will be essentially working for the government. HALF of what you make each and every day will be signed over to the government on your behalf.
Now, some of you in some more of the fiscally conservative states have a little bit better tax burden, some of you maybe even stopped paying in March, but for those of you in liberal states (also seem to be the ones in the most financial distress (weird)) may be paying even a bit longer. Joining Connecticut in the latest celebrations are New Jersey (April 25), New York (April 23), Maryland (April 19) and Washington (April 15). Alaska and Louisiana are joined in early celebration by Mississippi (March 28), South Dakota (March 29) and West Virginia (March 30).