Tax Freedom Day

Unfortunately, Tax Freedom Day is not a day of tax-free galore. Nor does it happen every day. Rather, Tax Freedom Day is a marker as to the duration we’ve had to work into the year in order to pay the nation’s tax bill. Think of it as Uncle Sam collecting the bill from American taxpayers for the year.

This includes all federal, state, and local taxes, divided by the nation’s income. In 2018, about 30% of the nation’s income goes towards taxes. Before you jump to conclusions about your own pay and taxes, remember the different tax brackets and large pay gaps, which skew the average. Rather than focusing on individuals, the percent of the nation’s income going to taxes is a huge aggregate average of all people and businesses together. Together we unite—to pay taxes. Yay for roads and things!