Something to ponder on tax day
Tax Day 2019 has arrived, and you’ll have to be sending in those returns with payments or seeking an extension today.
It’s also the day after Tax Freedom Day in Ohio, five days after Tax Freedom Day in West Virginia and one day before Tax Freedom Day in Pennsylvania, which falls right in line with Tuesday’s national Tax Freedon Day.
Tax Freedom Day is calculated by the Tax Foundation, a nonpartisan think tank based in Washington that was founded in 1937. It researches and informs citizens and government about tax policies. It is the date upon which all of the nation’s taxes would be paid for the full year (if all the wages earned were going solely into taxes first). The calculation is made by dividing all the local, state and federal taxes by the nation’s income.
According to the Tax Foundation, Tax Freedom Day this year for the nation comes 105 days into the year. If federal borrowing is included, the day would fall on May 8.
Looking back at the past several years, Tax Freedom Day fell on April 16 last year and on April 21 in 2017.
In higher income, higher taxed states, wage-earners work for government longer. Tax Freedom Day comes in Connecticut on April 25, in New Jersey on April 30 and in New York and Washington, D.C., on May 3. Meanwhile, the lowest average tax burden falls to Alaska, which set its wage earners free on March 25.
Taxes as a take balanced against income were at their longest period in 2000, when Tax Freedom Day occurred May 1.
But in 1900, more than a decade before the federal government established an income tax, Tax Freedom Day occurred Jan. 22.
It is projected that this year Americans will pay $3.4 trillion in federal taxes and $1.8 trillion in state and local taxes, for a total bill of more than $5.2 trillion, or 29 percent of the nation’s income.
It’s all something to ponder as you file those returns today. And if it makes you sleep any easier, know that if you were paying everything in 2019 in one lump sum, you’d now be working for yourselves in Ohio and West Virginia.