Taxes

ObamaCare, Payroll Taxes Push Tax Freedom Day Back for 2013

Celebrate with what little you have left

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Those pensions won't cover themselves, you know!
Credit: Hugo Maes, Dreamstime.com

Start organizing your parties today, tax haters. On April 18, we all will have handed over enough money to the government to have paid our average total tax bill for the year.

The non-profit think tank appropriately named the Tax Foundation makes this calculation every year to designate Tax Freedom Day. For 2013, the date falls five days later than it did in 2012, thanks to some well-publicized (at least here at Reason) culprits:

Tax Freedom Day is five days later than last year, due mainly to the fiscal cliff deal that raised federal taxes on individual income and payroll. Additionally, the Affordable Care Act's investment tax and excise tax went into effect. Finally, despite these tax increases, the economy is expected to continue its slow recovery, boosting profits, incomes, and tax revenues.

The Tax Foundation notes further that if federal borrowing were included, another 21 days of handing over your income would have to be added.

Believe it or not, considering current political battle over government spending (the debate between "too much" vs. "way too much"), 2013 does not bear the distinction of latest Tax Freedom Day. That honor goes to the year 2000, when it fell on May 1.

Well, there's always next year.

See the Tax Foundation's chart below the jump:

Note the lack of sick days
Chart by the Tax Foundation