108 Days Later: The Significance of Tax Freedom Day

108 Days Later: The Significance of Tax Freedom Day

By Alex Jenison – Payne Wealth Partners Intern

 

Uncle Sam may be asking you, “What have you done for your country?” The next time he finds the guts to ask again you can respond by saying, “Well, I worked for you this year, 2013, for 108 days without me keeping a dime.” Everyone, meet Tax Freedom Day. Tax Freedom Day already knows you so we can skip that part of the introduction.

In the United States, Tax Freedom Day is the day at which the nation’s income reaches the amount due in taxes for the current year. In 2013, Tax Freedom Day was April 18. After 108 days into this calendar year we have reached the milestone. In Laymen’s terms and theoretically, we are not getting paid for the work we’ve done up until April 18 as a nation. Essentially, we work for the government for free.

Although the economy is showing signs of improvement by boosting profits, incomes, and tax revenues, it is still just a slow improvement. It doesn’t help the economy’s nourishment while the nation’s taxes are continually increasing. As a result, the Tax Freedom Day for 2013 is five days later than in 2012. The latest date in the year the nation has reached Tax Freedom Day was in 2000, when it took up to May 1 to surpass our tax payment. The earliest was in 1900 as it took the nation just 22 days into January to reach its tax payments. (McBride, Pomerleau, and Malm)

The Indiana Director for American Prosperity, Chase Downham, is quoted in the Evansville Courier and Press saying, “The day reminds us that we may not realize how many taxes we’re paying and it helps when you look at the entire picture as a whole.” (McBride, Pomerleau, and Malm). While this is not actually a national holiday or event that anyone would celebrate, it is something that each taxpayer should be aware of and pay attention to.

 

(McBride, Pomerleau, and Malm)

Work Cited

McBride, William, Kyle Pomerleau, and Elizabeth Malm. “Tax Freedom Day is April 15th, 5 Days Later Than Last Year. .” Tax Foundation. Tax Foundation, 02 04 2013. Web. 22 Apr 2013. <http://taxfoundation.org/article/tax-freedom-day-2013-april-18-five-days-later-last-year>.

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The information in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements. The information does not attempt to examine all the facts and circumstances that may be relevant to an individual’s financial needs. Payne Wealth Partners, Inc. is not soliciting any action based on these statements.

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Payne Wealth Partners, Inc.
Keystone Financial Consulting
601 N Cross Pointe Blvd
Evansville, IN 47715
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