April 5 is Tax Freedom Day for Arizona | Events
Tax Freedom Day, the date on which Americans will have earned enough money to pay this year’s tax obligations at the federal, state, and local levels, falls on April 5 for residents of Arizona, while the date for the rest of the U.S. is April 18.
In the new Tax Foundation study, “Tax Freedom Day 2013” economists William McBride, Ph.D., Elizabeth Malm, and Kyle Pomerleau also calculate how long Americans would have to work in order to close the federal budget deficit. They found that in order to pay for all spending in the current year, the government would need to raise an additional $833 billion in taxes, pushing Tax Freedom Day to May 9.
“This year, Americans will work five days later than in 2012 to pay all of their taxes. The total tax bill at all levels comes to approximately $4.2 trillion, or 29.4% of their total income,” said McBride, in a recent news release. “That means Americans will pay more in taxes in 2013 than they will spend on food, clothing, and housing combined.”
The actual total tax burden is different for each state, not only due to differing state tax policies, but also because of the progressivity of the federal tax system. Higher-income states celebrate Tax Freedom Day later: residents of Connecticut (May 13), New York (May 6), and New Jersey (May 4) will face a significantly higher federal tax burden than lower-income states. This means residents of Mississippi and Louisiana will bear the lowest tax burdens in 2013, with Tax Freedom Day having already arrived on March 29. Tennessee, another lower-income state had their Tax Freedom Day on April 2.
The date for Tax Freedom Day fluctuates significantly from year to year. The latest-ever nationwide Tax Freedom Day was on May 1, 2000 – meaning that Americans paid 33 percent of their total income in taxes. A century earlier, in 1900, Americans paid only 5.9 percent of their income in taxes, meaning Tax Freedom Day came early for them on January 22.
There are five major categories of taxes that are part of the tax burden. They are: individual income taxes – including federal, state and local – that require 40 days of work.; payroll taxes take another 24 days of work; and sales and excise taxes, mostly state and local, take 15 days to pay off; while property taxes take 12 days, and corporate income taxes take another 9.
For more information, go to http://www.taxfreedomday.org