Wednesday, March 26, 2008

'Tax Freedom Day' comes early this year

New Yorkers will celebrate Tax Freedom Day earlier this year--on May 5, according to the Tax Foundation's annual calculation.

That's five days earlier than last year -- because of the checks the federal government is doling as an economic stimulus package.

But nationally, Tax Freedom Day is April 23. Only two other states celebrate Tax Freedom Day later--New Jersey, on May 7, and Connecticut, on May 8. Alaska gets to pop the cork the earliest, March 29.

The day is defined as a milestone when taxpayers start working for themselves instead of various levels of government. The calculation measures every tax dollar collected by Uncle Sam, the states, cities and counties and the Tax Foundation, a research and public education organization in Washington, D.C., compares it to data dating back to circa 1900.

For example, five major categories of tax dominate the tax burden: Individual income taxes, both federal and state, require 42 days' work. Payroll taxes take another 28 days, state and local sales and excise taxes take 16 days, corporate income taxes take 13 days, and property taxes take away 12 days.

New Yorkers will work 125 days paying taxes this year.

Source : http://www.bizjournals.com/

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