Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for year. That represents the day our earnings are available to us for food, clothing, shelter and other family budget items like health care and medicine.
Most taxpayers are surprised – and disgusted – to know that their taxes exceed what most Americans spend on food, clothing and shelter combined.
As the nation’s taxpayers file their tax returns by April 15, many have not worked long enough in 2014 to have paid all their federal, state and local taxes – even if every penny they earned went directly to pay their tax bills and nothing else. National Tax Freedom Day is April 21.
If we include this annual federal borrowing, which represents future taxes owed, National Tax Freedom Day would occur on May 6, 2014.
We in Texas fare better than most of the nation’s taxpayers. Texans work until April 13to pay the taxman.
While higher-income and higher-tax states celebrate Tax Freedom Day later: Connecticut (May 9), New Jersey (May 9), and New York (May 4), residents of Louisiana will bear the lowest average tax burden in 2014, with Tax Freedom Day arriving for them on March 30. Also early are Mississippi (April 2) and South Dakota (April 4).
Here are 20 “Tax Facts” just for your reading enjoyment…
10. The bottom 50% pay less than 3%. (Please do not read this as “the bottom 50% do not pay taxes.” The income tax is not the only tax.)
Texas’s 2014 Business Tax Climate Index Ranks 11
How does our state’s tax system compare to other states? While we’d like to be Number One, Texas ranks 11th in the Tax Foundation’s State Business Tax Climate Index. While we have no business (or personal) income tax, Texas does impose a gross receipts tax on businesses. The Tax Foundation compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: New Mexico, 38th, Oklahoma, 36th, Arkansas, 35th, and Louisiana, 33rd.