Tax (Disappearing) Freedom Day
The Tax Foundation tells us that “Tax Freedom Day®” (TFD), representing how long it will take the average American “to earn enough money to pay this year’s combined 29.2% federal, state, and local tax bill,” will arrive at about noon on April 17, the same day as this year’s federal and state income tax filing deadline, and four days later than last year.
While useful as a starting point, the foundation’s “average American” is not the same as “a typical American.”
Take the 32 days the foundation tells us is required for paying all federal income taxes. In 2009, almost half of the U.S. population was either in a household which didn’t need to file a federal income tax return, or was in one which filed a return with no federal income tax liability. This half of America didn’t have to work any of those 32 days to be free of federal income tax. Additionally, thanks to items like the Earned Income Tax Credit, the IRS handed out billions of dollars tax-free to millions in this group. To make up for all of this, the other half of the U.S. population had to work far more than 32 days to pay their federal income tax bills. Somehow, we have allowed such an arrangement to be called “progressive.”
It’s also quite instructive to see how results differ by state. The latest-occurring TFDs in 2012 are in Connecticut (May 5), New York (May 1), and New Jersey (May 1). In 2011, Nutmeg State Governor Dannel Malloy raised or created over 75 taxes and promised in return to get spending under control. As usual, the latter hardly happened. This year, collections will probably trail projections, and the state continues to face a budget deficit. In the Empire State, Governor Andrew Cuomo’s predictable answer to last year’s budget problems was “more revenue, more spending.” New Jersey Governor Chris Christie may be fighting the good fight against the Garden State’s tax-and-spend culture, but it hasn’t shown up yet on the TFD calendar.
Perhaps the best object lesson in fiscal folly can be found in President Obama’s home state of Illinois. Its TFD went from April 15 in 2011 to April 23 this year. Early last year, Governor Pat Quinn and his Democrat-dominated legislature pushed through massive tax hikes while doing little to rein in spending. The state has added 32,000 seasonally adjusted jobs in the past twelve reported months, just about the worst performance as a percentage of the workforce in the nation. Even worse, the state’s money woes are more serious than ever. Meanwhile, Midwestern neighbors Wisconsin, Ohio, and Michigan — “newly red” states where Republican governors Scott Walker, John Kasich, and Rick Snyder succeeded spendthrift Democrats in 2011 — all managed to balance their state budgets last year without tax increases.
Tom, an unwelcome but illuminating reminder of some harsh realities.
Romney and the Rs need to relentlessly hammer such points. Everywhere they go, they need to ask:
- What do you really want: More taxes or more jobs?
- What would make your life better: Higher taxes or higher paying jobs?
- What would help your small business grow: More regulations or more freedom?
Two suggestions:
1. Link to the article, Transformational Tax Reform: Withhold Taxes From Every OTHER Paycheck, over at the PJ Tatler
2. What would your Tax Freedom Day analysis look like for a micro or small business?
The mind boggles.
The signs have been everywhere!
Maxine Waters Threatens to Socialize Big Oil
http://www.youtube.com/watch?v=Y0BdKkEKTrs&feature=player_embedded
Paying the taxes is hard enough but seeing it spent, a la GSA parties, is all most too much to bear. Let’s hope the tea party has some life left in it.
Here’s to the yearly potlatch. The only problem? The State decides how much of your hard-earned money that you may keep. I brought this up here, emphasizing the question of whether or not Might Makes Right. See http://clarespark.com/2012/04/12/the-donkey-serenade-and-buffetts-rule/. Even the most conservative of the modern social theorists believed that the person who mixes his/her labor with the soil or who takes risks has a right in private property. But in today’s world, there is State property and they own the right to tax all they want, no matter how corrupt the administration. Ask Elizabeth Warren. She has no doubt that a benign Democratic Party will leave you a big chunk.
If only there were a presidential candidate who has a congressional record of never voting for a tax increase, never voting for an unbalanced budget, never voting to increase congressional pay, wants to eliminate the entire income tax and IRS, is serious about wasteful spending and the debt and has a plan to balance the budget in three years without raising taxes….
Oh wait, there is a presidential candidate like that. Ron Paul. Who has far more delegates than the media gives him credit for. Check out the “Ron Paul massive rallies 2012″ video for images you won’t see on television.
I cannot believe that Tax Freedom day is as EARLY as April 17. It sure isn’t that early for me. I wonder if the foundation took into account the additional real taxes that employees pay: the “employer’s” portion of the Social Security and Medicare taxes? I figure that my Tax Freedom Day is around June 5, maybe even later; that’s counting all income taxes, real estate taxes, property taxes, social security and medicare taxes, gasoline taxes, sales taxes, etc.
Then if you add in the days necessary to pay for the administration of all these taxes, and my compliance, my Tax Freedom Day probably edges closer to July. Hell, it took me three full days just to do my taxes!
Tax Freedom Day IS in July. You just have to pony up the cash by April 17.
PETER SCHIFF -The Truth About Gas Prices!
http://www.youtube.com/watch?v=CPDhJLwXuY4&feature=related
The $5 Trillion Man: Debt Has Increased Under Obama by $5,027,761,476,484.56 By Terence P. Jeffrey April 18, 2012
http://cnsnews.com/news/article/5-trillion-man-debt-has-increased-under-obama-502776147648456