Celebrate Tax Freedom Day

America Will Work One Day More for Government in 2010 than in 2009; Recession and Tax Cuts Have Made Tax Freedom Earlier
Tax Freedom Day will arrive on April 9 this year, the 99th day of 2010, according to our annual calculation using the latest government data on income and taxes. Americans will work well over three months of the year—from January 1 to April 9—before they have earned enough money to pay this year's tax obligations at the federal, state and local levels.

This year's Tax Freedom Day is one day later than in 2009, but more than two weeks earlier than in 2007. The shift toward a lower tax burden since 2007 has been driven by three factors: (1) The recession has reduced tax collections even faster than it has reduced income; (2) President Obama and the Congress have enacted large but temporary income tax cuts for 2009 and 2010, just as President Bush did in 2008; and (3) Two significant taxes were repealed for 2010 as part of previous legislation, the estate tax and the so-called PEP and Pease provisions of the income tax.

Despite all these tax reductions, Americans will pay more taxes in 2010 than they will spend on food, clothing and shelter combined.

Tax Freedom Day by State, 2010
State	Days Spent Working to Pay Taxes	Tax Freedom Day	Rank
United States	99	April 9	-
Alabama	92	April 2	42
Alaska	85	March 26	50
Arizona	94	April 4	37
Arkansas	93	April 3	38
California	104	April 14	7
Colorado	100	April 10	17
Connecticut	117	April 27	1
Delaware	100	April 10	18
Florida	95	April 5	31
Georgia	98	April 8	24
Hawaii	99	April 9	19
Idaho	98	April 8	22
Illinois	101	April 11	14
Indiana	96	April 6	29
Iowa	94	April 4	36
Kansas	97	April 7	25
Kentucky	93	April 3	41
Louisiana	85	March 26	49
Maine	94	April 4	34
Maryland	109	April 19	4
Massachusetts	104	April 14	6
Michigan	98	April 8	21
Minnesota	103	April 13	8
Mississippi	87	March 28	48
Missouri	94	April 4	35
Montana	95	April 5	33
Nebraska	97	April 7	27
Nevada	92	April 2	43
New Hampshire	86	April 6	28
New Jersey	115	April 25	2
New Mexico	91	April 1	45
New York	113	April 23	3
North Carolina	97	April 7	26
North Dakota	93	April 3	39
Ohio	98	April 8	23
Oklahoma	96	April 6	30
Oregon	98	April 8	20
Pennsylvania	103	April 13	11
Rhode Island	102	April 12	12
South Carolina	93	April 3	40
South Dakota	88	March 29	47
Tennessee	91	April 1	44
Texas	95	April 5	32
Utah	101	April 11	15
Vermont	103	April 13	9
Virginia	103	April 13	10
Washington	105	April 15	5
West Virginia	89	March 30	46
Wisconsin	102	April 12	13
Wyoming	101	April 11	16
District of Columbia	105	April 15

How Tax Freedom Day Is Calculated

Tax Freedom Day answers the basic question, "What price is the nation paying for government?" An official government figure for total tax collections is divided by the nation's total income. The answer this year is that taxes will amount to 26.89 percent of our income, and the stretch of 99 days from January 1 to April 9 is 26.89 percent of the year. Income and tax data are then parsed out to the states, yielding 50 state-specific Tax Freedom Days.

Read the Tax Freedom Day Special Report.

reposted from the NTU