There’s that lyric from the late George Harrison, “Let me tell you how it will be … there's one for you, nineteen for me… Should five percent appear too small … be thankful I don't take it all.” The Beatles’ “Taxman” is a great opener to their 1966 album Revolver, where it attacks taxation and the government’s abuse of that power. According to the Tax Foundation, Americans will be doling out $3.3 trillion in federal taxes and $1.6 trillion in state and local taxes. So, our immediate bills are getting paid, yet the amount in tax Americans have paid will total more than housing, food, and clothing combined for this year. So, there’s that depressing fact, along with the fact the national debt that is bordering on $20 trillion. So, while your taxes to Uncle Sam are not due until next Monday (April 18), I guess you have this depressing fact to ponder until filing day. Here’s to another year of the federal government cracking our backs.
- Americans will pay $3.3 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total bill of almost $5.0 trillion, or 31 percent of the nation’s income.
- Tax Freedom Day is one day earlier than last year, due to slightly lower federal tax collections as a proportion of the economy.
- Americans will collectively spend more on taxes in 2016 than they will on food, clothing, and housing combined.
- If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 16 days later, on May 10.
- Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden.