Tax Freedom Day
 

Tax Freedom Day
By: Patricia T. Henssler, C.P.A.
The Henssler Financial Group Position Paper

The Hensler Financial Group Wealth Management

The Tax Foundation prepares an annual calculation that defines how long the nation's taxpayers have to work before earning enough money to pay for government (federal, state and local) — and start spending money on themselves. For 2007, Tax Freedom Day was April 28th — with 79 days spent working for federal taxes and 41 days for state and local government.

I do not know about you, but that is disheartening; I work hard for my money. The following are some selected years to see what has happened to our tax burden over the years.

Tax Freedom Day & Total Effective Rate
by Level of Government
1900 - 2007

 
All Governments
Federal Government
State and Local
Year
Tax Freedom Day
Total
Effective
Tax Rate
Days Spent Working to Pay Taxes
Federal Effective
Tax Rate
Days Spent Working to Pay Taxes
Georgia Effective
Tax Rate
1900
Jan-21*
5.9%
8
2.1%
13
3.8%
1910
Jan-19
5.0%
5
1.1%
15
3.9%
1920
Feb-11*
11.6%
29
7.8%
13
3.8%
1921
Feb-21
14.1%
33
8.8%
20
5.3%
1930
Feb-10
11.1%
12
3.3%
28
7.9%
1935
Feb-24
15.0%
20
5.5%
34
9.5%
1940
Mar-03*
17.4%
32
8.8%
31
8.6%
1941
Mar-13
19.9%
46
12.7%
26
7.2%
1942
Mar-15
20.5%
54
14.8%
20
5.7%
1943
Apr-03
25.5%
76
20.8%
17
4.7%
1950
Mar-30
24.4%
67
18.3%
22
6.2%
1955
Apr-02
25.4%
69
18.9%
23
6.5%
1960
Apr-08*
27.3%
71
19.5%
28
7.8%
1970
Apr-17
29.3%
72
19.5%
35
9.8%
1980
Apr-19*
30.1%
76
20.8%
34
9.3%
1990
Apr-20
30.3%
74
20.2%
36
10.1%
1995
Apr-23
31.2%
76
20.8%
37
10.3%
2001
May-03
33.8%
86
23.6%
37
10.2%
2002
Apr-27
30.0%
80
20.4%
37
9.6%
2003
Apr-19
29.9%
74
20.3%
35
9.6%
2004
Apr-15
38.4%
65
28.6%
36
9.8%
2005
Apr-23
39.9%
74
20.2%
39
10.7%
2006
Apr-26
31.6%
77
21.0%
39
10.6%

*Leap Year makes Tax Freedom Day appear a day earlier because February 29 is one of the days worked.

The complete table, including Tax Freedom By State can be found at taxfoundation.org. If you would like further information regarding this topic or any other tax related issue, please contact The Henssler Financial Group Tax & Accounting Division at 770-428-4025.

 
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