Congratulations! If you live in Arkansas, today is the day that you — on average — have managed to pay off your 2015 tax bill, and you may now spend the remaining 8.5 months of the year working to put food on the table for yourself and your family.
From the Tax Foundation:
This year, Americans will work the longest to pay federal, state, and local individual income taxes (43 days). Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (12 days), and property taxes (11 days). The remaining 7 days are spent paying estate and inheritance taxes, customs duties, and other taxes.
Tax Freedom Day is today, April 14th, in Arkansas. Tax Freedom Day in Oklahoma and Missouri also occurs today.
States, like individuals, are actually punished under current federal tax policy for their success. Due to the progressive (you earn more, you pay more) nature of federal taxation, Texas’s Tax Freedom Day occurs three days later than Arkansas’s — largely due to how much better the Texas economy is doing.
According to the Tax Foundation, Americans will pay $3.3 trillion in federal taxes and $1.5 trillion in state and local taxes. That’s a total bill of more than $4.8 trillion, or 31 percent of the nation’s income. We’ll also spend more on taxes in 2015 than we will on food, clothing, and housing combined.
It’s a little depressing, but don’t let it get you down. Crack open a beer tonight and celebrate: your 3.5 month indentured servitude to the government is completed. At least for this year.