Monday was Tax Freedom Day, the date on which Americans have collectively earned enough income to pay off their total federal, state, and local tax bill. It arrived days later than last year and 111 days into 2014, according the nonpartisan Tax Foundation’s annual report.
The study’s key findings include:
Tax Freedom Day is three days later than last year due mainly to the continuing economic recovery, which will boost federal tax revenue collected through the corporate, payroll, and individual income tax.
Americans will spend more on taxes in 2014 than they will on food, clothing, and housing combined.
Americans will pay $3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.5 trillion, or 30.2 percent of the nation’s income.
Americans will spend 42 days working to pay off income taxes, 15 days for excise taxes, and 11 days for property taxes.
If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur on May 6, 15 days later.
Tax Freedom Day represents how long Americans as a whole must work in order to pay the nation’s tax burden.
Historically, the date for Tax Freedom Day has fluctuated significantly. The earliest was January 22, 1900.