The Tax Foundation prepares an annual calculation that defines how long the nation’s taxpayers have to work before earning enough money to pay this year’s tax obligation at the federal, state and local levels, and start spending money on themselves. For 2011, Tax Freedom Day was April 12th—with 102 days for federal taxes and 93 for state and local government. For 2012, Tax Freedom Day was April 17th with 70 days spent working for federal taxes and 37 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 – 2012
|
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
|
30.9%
|
74
|
20.2%
|
39
|
10.7%
|
|
2006
|
Apr-26
|
31.6%
|
77
|
21.0%
|
39
|
10.6%
|
|
2007
|
Apr-26
|
31.7%
|
77
|
21.6%
|
40
|
10.1%
|
|
2008
|
Apr-21*
|
30.8%
|
70
|
20.9%
|
39
|
9.9%
|
|
2009
|
Apr-13
|
28.2%
|
63
|
18.3%
|
38
|
9.9%
|
|
2010
|
Apr-9
|
26.9%
|
66
|
17.1%
|
38
|
9.8%
|
|
2011
|
Apr-12
|
27.7%
|
67
|
17.9%
|
38
|
9.8%
|
|
2012
|
Apr-17
|
29.2%
|
70
|
18%
|
37
|
11.2%
|
*Leap Year makes Tax Freedom Day appear a day earlier because February 29th 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, contact Henssler Financial at 770-429-9166 or experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
