April 19, 2018
Tax Freedom Day: How Does Your State Compare?
Now that you (hopefully) have your own taxes done, it is time to celebrate Tax Freedom Day!
The Tax Foundation created Tax Freedom Day as a way of representing how much Americans need to work in order to pay the nation’s tax burden. 109 days into this year, we’ve earned enough to cover it. The bad news? Americans will spend more on taxes in 2018 then we will on housing, food, and clothing.
To bring it even closer to home, look how your state’s tax burden compares to others.
The good news is Americans had to work three days less than 2017, largely due to the recent federal tax law, the Tax Cuts and Jobs Act, which significantly lowered federal individual and corporate income taxes.
The federal tax reform is enabling Americans to keep more of what they earn and have greater financial security, though most Americans don’t think so. The James Madison Institute conducted a poll earlier this week identifying a disconnect between people’s perceptions and the actual outcomes of federal tax reform. Less than one-third expected the average family to pay less taxes yet in reality they’ll pay roughly $1,000 less.
Interested in finding out more about how taxes at the state-level are affecting the average American? Check out our recent tax day post.
