Monday, April 16, 2012

April 17th tax irony

Today is Emancipation Day in Washington D.C.  It has been an official holiday since 2005.  As a result, all government offices in D.C. are closed, including the IRS.

Since the regular deadline for filing your taxes of April 15th was a Sunday this year, they would normally be due the following Monday.  But throw in a holiday, celebrated only in the nation's capital, and everyone gets an extra day in which to get their taxes postmarked and sent off to the government.

Ironically, April 17th is also Tax Freedom Day for the nation.  

"Americans will work 107 days into the year, from January 1 to April 17, to earn enough money to pay this year’s combined 29.2% federal, state, and local tax bill.

Tax Freedom Day is a vivid, calendar-based illustration of government’s cost, and it gives Americans an easy way to gauge the overall tax take. Conceived by Florida businessman Dallas Hostetler in 1948, he deeded the concept to the Tax Foundation upon his retirement in 1971."
This is four days later than it was last year - which means that it's taking you longer to earn enough to pay your taxes, as you can see from the calendar, courtesy of The Tax Foundation

Since the beginning of the year, you've been working not for yourself, your family and your goals - you've been working to pay your 'fair share,' despite the fact that nearly half of the nation doesn't.

The good news for Ohioans is that our tax day was April 12th.  Michigan's was April 14th.

The total tax burden borne by residents of different states varies considerably, not only due to differing state tax policies, but also because of the steep progressivity of the federal tax system. This means higher-income states celebrate Tax Freedom Day later: Connecticut (May 5), New Jersey (May 1), and New York (May 1) residents face a significantly higher total federal tax burden than lower-income states.

Residents of Tennessee will bear the lowest average tax burden in 2012, with Tax Freedom Day arriving for them on March 31. Also early are Louisiana (April 1), Mississippi (April 1), South Carolina (April 3), and South Dakota (April 4).
So as you're rushing to finalize your 1040s, you can rejoice because you've now earned enough to cover your tax and from now on you're actually working for yourself!

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