It’s Fix the Tax Code Friday!
Remember that study that I cited from the Tax Foundation earlier in the week? That same report offered another statistic. In 2007, the cost of balancing the budget would have cost each taxpayer an additional $1,789 in taxes. This year, due to “the bailouts and the Troubled Asset Relief program under the Bush administration, as well as the stimulus and fiscal year 2009 omnibus spending bills under the Obama administration”, that number has skyrocketed to $8,798. Yep, $8,798 extra to balance the budget.
Is it worth it?
Today’s Fix the Tax Code Friday question is:
Would you be willing to pony up $8,798 in extra taxes to balance the budget? If not, what about would you be willing, if any, to put up?
(Psst, in case you’re wondering, the Tax Foundation study found that 6% of taxpayers would be willing to pay the whole thing.)
Happy Tax Freedom Day! And if you’re thinking it feels early this year, you’re right…
In 2009, Tax Freedom Day in the US arrives on April 13, the earliest it’s appeared since 1967, according to the Tax Foundation. That’s more than a week earlier than last year and two weeks earlier than in 2007.
Tax Day marks the day that taxpayers have earned enough money to pay their taxes for the year. The idea was conceived in 1948 by Florida businessman Dallas Hostetler. Hostetler eventually transferred the trademarked day to the Tax Foundation, which has calculated Tax Freedom Day for various nations and the states ever since.
Why so early for the US this year? The recession and the stimulus package have combined to reduce the overall tax burden faster in 2009 (a trend that may continue through 2010). See?! A silver lining!
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Tax Freedom Day
Don’t get excited… we’re not talking about football (Favre or not, I can’t get behind the Jets**. Go Eagles!). We’re talking about tax.
According to the Tax Foundation, New Jersey residents paid the highest percentage of state and local taxes. Folks from New Jersey paid a whopping 11.8% of income in state and local taxes, more than 2% above the national average.
New York residents just eked out a second place finish, paying 11.7%.
Rounding out the top:
3, Connecticut: 11.1%
4, Maryland: 10.8%
5, Hawaii: 10.6%
6, California: 10.5%
7, Ohio: 10.4%
8, Vermont: 10.3%
9, Wisconsin: 10.2% (tie)
9, Rhode Island: 10.2% (tie)
9, Pennsylvania: 10.2% (tie)
9, Minnesota: 10.2% (tie)
The states that paid the lowest rates are:
1, Alaska: 6.4%
2, Nevada: 6.6%
3, Wyoming: 7.0%
4, Florida: 7.4%
5, New Hampshire: 7.6%
6, South Dakota: 7.9%
7, Tennessee: 8.3%
8, Louisiana: 8.4% (tie)
8, Texas 8.4% (tie)
10, Arizona: 8.5%
** Yes, yes, yes. The Jets are really the New York Jets. But they play in New Jersey. And their fans are from Jersey. I think New Yorkers support that other team.
