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Monday, April 21, 2014
Nationwide, today is Tax Freedom Day, the day the average American stops earning money to pay their local, state and federal taxes and starts earning money for themselves.

New Yorkers aren't average. Our Tax Freedom Day isn't for another two weeks — on May 4, making the Empire State the third latest Tax Freedom Day in the nation, behind only New Jersey and Connecticut, which are both tied for first place on May 9.

To be clear, the government will still be taking taxes out of your payroll check in May. And every month for the rest of the year. But statistically speaking, if you paid your taxes first and kept the rest for yourself, you'd be done today as an average American — and May 4 as an average New Yorker.

In 2014, Americans will pay $3.0 trillion in federal taxes and $1.5 trillion in state taxes, for a total tax bill of $4.5 trillion, or 30.2 percent of income. That puts Tax Freedom Day on the 111th day of the year. April 21. Today. Last year Tax Freedom Day was April 18.

Tax Freedom Day has not always been this late in the year. World War I tax increases led to a jump in Tax Freedom Day from 1917’s January 24 to 1918’s February 8 to 1921’s February 22. The Great Depression and the Hoover/Roosevelt tax increases led to not only a later Tax Freedom Day but also a shift in who was collecting. In 1932, Americans spent 10 days paying federal taxes and 46 days paying state and local taxes. By 1940, Americans worked 33 days to pay each. World War II brought increased federal spending and borrowing, with Tax Freedom Day arriving in April for the first time in 1943.

Taxes have never receded to their pre-World War II levels. In 1949, Tax Freedom Day was March 21, but it has slowly and steadily climbed since. In the year 2000, it was May 1, the latest date on record. That meant that nearly a third — 33 percent — of American wages went to pay taxes. The earliest Tax Freedom day over the past five decades was 2009 when it arrived on April 10.



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