Tags: Work | Days | Pay | Taxes

Americans Work 107 Days a Year Just to Pay Taxes

Thursday, 05 April 2012 07:33 AM

Most Americans will spend an average of 107 days this year working just to be able to earn enough money to pay their taxes, according  to the Tax Foundation, a research group that favors lower taxes.

The organization calculates Tax Freedom Day each year — the day on which Americans have earned enough money to pay their taxes — basing its research on income, Social Security, sales, property and other taxes. That day is April 17 this year, the same day taxes are due, CNNMoney reports.

The foundation’s figures show that that Americans will spend 29 percent of their income — more than the average family spends on food, clothing and housing combined — on federal, state and local taxes in 2012.

Editor's Note:The IRS’ Worst Nightmare — How to Pay Zero Taxes

That’s four days later than last year. "As the economic recovery continues, the growth in individual incomes and corporate profits will increase tax revenues and push Tax Freedom Day ever later in the year," the Tax Foundation said in a statement.

When your Tax Freedom Day arrives depends on where you live. If you reside in Tennessee, Louisiana and Mississippi, where average incomes and state taxes are lower, it’s already arrived.

However, Connecticut residents won't be free of their tax burdens until May 5, and residents of New Jersey and New York won't welcome Tax Freedom Day until May 1.

The Voice of America reports that individuals aren’t alone in being tax-burdened. The United States now has claimed the dubious distinction of having the industrialized world's highest corporate tax rate.

Editor's Note:The IRS’ Worst Nightmare — How to Pay Zero Taxes

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Thursday, 05 April 2012 07:33 AM
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