This year, taxpayers will spend 113 days working to pay for the nation's tax burden, according to a report from the Tax Foundation.
Tax Freedom Day is April 23, 113 days into the year, and falls 5 days after taxes are collected on April 18. Tax Freedom Day would fall roughly two weeks later on May 7 if federal borrowing or future taxes were included.
"Tax Freedom Day takes all federal, state, and local taxes—individual as well as payroll, sales and excise, corporate and property taxes—and divides them by the nation's income," the report says.
Americans will spend upward of $5.1 trillion on taxes, which includes $3.5 trillion in federal taxes and $1.6 trillion in state and local taxes, according to the report.
"This year, Americans will work the longest—46 days—to pay federal, state, and local individual income taxes," the report states. "Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (10 days), and property taxes (10 days). The remaining six days are spent paying estate and inheritance taxes, customs duties, and other taxes."
The report also finds that Americans will spend more on federal, state, and local taxes than on food, clothing, and housing combined this year. While Americans will spend about $5.1 trillion on taxes in 2017, they will spend just over $4 trillion on these household items.
Published under: Taxes