If interested, see the post below this for some graphs of this. (don't want to kill your browsing bandwidth :))
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Posted on 04/16/2006 8:01:06 PM PDT by elkfersupper
Tax Freedom Day will arrive on the 116th day of 2006 — Wednesday, April 26. Because of the rising tax payments that accompany economic growth, this year’s Tax Freedom Day is three days later than it was in 2005 and a remarkable 10 days later than it was in 2004.
Despite the rapid growth of the total tax burden between 2004 and 2006, Tax Freedom Day still shows the effects of the Bush tax cuts in 2001 and 2003. Even as late as April 26, Tax Freedom Day is still celebrated seven days earlier than it was in 2000 when the tax burden reached its peak and Tax Freedom Day was delayed until May 3.
Although a significant tax cut has been enacted in each of the last five years, only two of those were large and long-lasting enough to continue affecting the tax burden in 2006. Those were the Economic Growth and Tax Reform Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). However, these tax cuts did little to diminish the progressivity of the federal income tax. Naturally, then, as economic growth has resumed, so has the growth of the tax burden.
The tax burden will be higher in 2006 not because of tax increases — none have been passed at the federal level recently and none are expected in 2006 — but rather because of rapid economic growth expected by most economists to continue through the year.
After a recession in 2001 and 2002’s nearly stagnant but slowly growing economy, economic conditions improved significantly. The economy is now producing tax revenue commensurate with its impressive growth. The unemployment rate in February 2006 was 4.8 percent, down from 5.4 percent a year earlier in February 2005 (Bureau of Labor Statistics).
Additionally, Gross Domestic Product (GDP), the standard measure of an economy’s size and strength, grew by a robust 6.5 percent nominally from 2004 to 2005 (Bureau of Economic Analysis). These figures indicate a rapidly growing economy, which is always reflected in a later Tax Freedom Day unless tax rates are cut significantly.
Recently much attention has focused on the growing size of federal budget deficits. In fiscal year 2006 the deficit is projected to be $319 billion. If taxes were increased immediately to pay for this budget shortfall, Tax Freedom Day would experience a significant increase of 10 days from April 26 to May 6, which would set the record high Tax Freedom Day.
Can't believe nobody posted this yet.
Check out the PDF file at the link.
I especially like the pie chart that shows how many days we work for what on page 6.
Progressive tax is regressive, and vice versa.
I guess I don't understand why a better economy means this date is later.
With a better economy people make more money. As they make more money they are pushed into higher tax brackets and pay a higher total percentage.
...if you qualify for an EIC (earned income credit) your tax freedom day is last year, haa!
And the biggest parties are in the neighborhoods of illegals....
Read up on the Laffer curve.
We haven't reached the downside yet.
General economic prosperity can't be related to taxation until taxes get high enough to stifle economic activity.
We're not there yet, even though taxes are too high.
The real test would be to lower federal taxes across the board steadily until revenue to the Treasury started to decrease, then hold.
That would be the most efficient tax rate. Then, we can talk about spending.
Look at the pie chart in the PDF file at the link.
We pay more in taxes than food, clothing, shelter combined.
Outrageous.
Ping.
I just found out I'm rich, WOO HOO!
Because, after all, only the "rich" have to pay the AMT, right?
What is the tax freedom day when it includes federal tax, state tax, sales tax, exise tax, usage tax, gas tax, capital gains tax, tax tax, and the tax on tax tax? December 15?
"...if you qualify for an EIC (earned income credit) your tax freedom day is last year, haa!"
Too bad more conservatives don't realize this and talk to their accountant about how to structure their income so as to qualify. Choking Leviathan at its roots is a good thing.
No you didn't. We have until Tuesday in Massachusetts. Monday is a State Holiday (Patriot's Day).
time for a flat tax
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Ah… for the good ‘ol days (pre WWI)
Sometime after the city, county, state, and federal governments seize and liquidate all of your assets after you die.
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