Money Matters

Tax Freedom Day

What is Tax Freedom Day?
It is the day when Americans have earned enough money to pay off their tax bill for the year. Taxes at all levels of government – local, state and federal – are included. Last year, for the United States as a whole, Tax Freedom Day was on April 9 – the 99th day of 2010. That means from April 9 to December 31, 2010, you worked for yourself!

When is Tax Freedom Day?
Each year, the Tax Foundation, a tax research organization based out of Washington D.C., calculates Tax Freedom Day. Every dollar that is officially considered income by the government is counted, as is every payment to the government that is officially counted as tax. By the end of March 2011, we should know the official date of Tax Freedom Day for this year.

How is Tax Freedom Day Calculated?
Tax Freedom Day answers the basic question, "What price is the nation paying for government?" An official government figure for total tax collections is divided by the nation's total income. The answer in 2010 was that taxes amounted to 26.89 percent of our income, and the stretch of 99 days from January 1 to April 9 is 26.89 percent of the year. Income and tax data are then determined for each of the states, yielding 50 state-specific Tax Freedom Days.

When did Tax Freedom Day start?
Dallas Hostetler, a Florida businessman, developed the concept of Tax Freedom Day in 1948. Hostetler trademarked the phrase “Tax Freedom Day” and calculated it each year until 1970. Upon his retirement in 1971, Hostetler transferred the trademark to the Tax Foundation, who has calculated the day for the United States ever since. The Tax Foundation began calculating the specific Tax Freedom Day for each individual state in 1990.

So what was the Tax Freedom Day for Florida in 2010?
With the differences in incomes and state and local taxes, each state has its own Tax Freedom Day. Florida’s Tax Freedom Day was on April 5, the 95th day of 2010, and ranked 31st out of the 50 states. On April 8, the 98th day of 2010, was Georgia’s Tax Freedom Day (the state ranked 24th). Alabama’s Tax Freedom Day fell on April 2 (the 92nd day of 2010) and ranked 42nd out of the 50 states.

To learn more about Tax Freedom Day and the Tax Foundation, please visit www.taxfoundation.org/taxfreedomday.



	Sales Tax - Rental Property Life Insurance Good Debt vs. Bad Debt Difference Between a Will and Living Trust Tax Freedom Day Small Business/ Self-Employed Individuals Retirement Options Establishing a Financial Safety Net Financial Tips 2010 Tax Relief Act for Individuals Tips for Starting Your Own Business Tips for Small Business / Self-Employed Individuals Archived Video Tips	Tax Freedom Day What is Tax Freedom Day? It is the day when Americans have earned enough money to pay off their tax bill for the year. Taxes at all levels of government – local, state and federal – are included. Last year, for the United States as a whole, Tax Freedom Day was on April 9 – the 99th day of 2010. That means from April 9 to December 31, 2010, you worked for yourself! When is Tax Freedom Day? Each year, the Tax Foundation, a tax research organization based out of Washington D.C., calculates Tax Freedom Day. Every dollar that is officially considered income by the government is counted, as is every payment to the government that is officially counted as tax. By the end of March 2011, we should know the official date of Tax Freedom Day for this year. How is Tax Freedom Day Calculated? Tax Freedom Day answers the basic question, "What price is the nation paying for government?" An official government figure for total tax collections is divided by the nation's total income. The answer in 2010 was that taxes amounted to 26.89 percent of our income, and the stretch of 99 days from January 1 to April 9 is 26.89 percent of the year. Income and tax data are then determined for each of the states, yielding 50 state-specific Tax Freedom Days. When did Tax Freedom Day start? Dallas Hostetler, a Florida businessman, developed the concept of Tax Freedom Day in 1948. Hostetler trademarked the phrase “Tax Freedom Day” and calculated it each year until 1970. Upon his retirement in 1971, Hostetler transferred the trademark to the Tax Foundation, who has calculated the day for the United States ever since. The Tax Foundation began calculating the specific Tax Freedom Day for each individual state in 1990. So what was the Tax Freedom Day for Florida in 2010? With the differences in incomes and state and local taxes, each state has its own Tax Freedom Day. Florida’s Tax Freedom Day was on April 5, the 95th day of 2010, and ranked 31st out of the 50 states. On April 8, the 98th day of 2010, was Georgia’s Tax Freedom Day (the state ranked 24th). Alabama’s Tax Freedom Day fell on April 2 (the 92nd day of 2010) and ranked 42nd out of the 50 states. To learn more about Tax Freedom Day and the Tax Foundation, please visit www.taxfoundation.org/taxfreedomday.