We interrupt reality for our annual Tax Freedom Day alert.
That’s the day of the Bizarro World calendar year when Americans have earned enough to pay off all of their annual federal and state tax debts. This year, it falls on April 18 — five days later than last year.
“In 2013,” the Tax Foundation reports, “Americans will pay $2.76 trillion in federal taxes and $1.45 trillion in state taxes, for a total tax bill of $4.22 trillion, or 29.4 percent of income. April 18 is 29.4 percent, or 108 days, into the year.”
What does all of that mean? Not a lot, outside of being a semi-interesting look at who pays how much in state and federal taxes. For instance:
- Americans will work 40 days to pay off their individual income taxes, 27 days for insurance taxes, 14 days for sales and excise taxes, 12 days for property taxes, nine days for corporate income taxes, and seven days for miscellaneous items like car taxes, severance taxes, and estate taxes.
- Maryland’s Tax Freedom Day is April 21. In Washington D.C. and Virginia, it falls on April 20. In Pennsylvania, it’s April 17. Compare those to Connecticut, where Tax Freedom Day falls on May 13 — the latest in the nation.
Beyond that, it’s little more than a tax season diversion — not that there’s anything wrong with that. For CPAs in April, a little diversion goes a long way.