Tax Freedom Day Definition

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Definition Of Tax Freedom Day:

The day thatthe average American hasearned enough money (in theory) topay off his or her total tax obligations for the year.
The calculation used to determine this date assumes that everyone in the nation works for eight hours a daybeginning January 1,and that every dollarearned is not spent. The Tax Foundation calculatesTax Freedom Day and also publishes ashort report that summarizes trends relating to this measure.In2008, Tax Freedom Daywas calculated asApril 23, which means that it took Americans 113 daysof work to pay their tax obligations.Tax Freedom Day is a useful indicatorfor gaugingthe impact of taxes each year. The calculation includes all taxes incurred, including income tax, federal tax, state tax, medicare and excise taxes. Examination of the trends related to Tax Freedom Day illustrates how changes in tax law, government monetary policy, and even World War I and II have affected when Tax Freedom Day will fall.

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