According to their findings, Americans will pay $3.3 trillion in federal taxes and $1.6 trillion in state and local taxes, totalling nearly $5.0 trillion, or approximately 31% of the nation's income.
“This year, Americans will work the longest to pay federal, state, and local individual income taxes (46 days). Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (nine days), and property taxes (11 days). The remaining seven days are spent paying estate and inheritance taxes, customs duties, and other taxes,” the report stated.
Tax Freedom Day is when the nation has collectively earned enough money to pay its total tax bill for the year. This year, Tax Freedom Day falls on April 24th, or 114 days into the year (excluding Leap Day, which is earlier than last year). The Tax Foundation reports that this is due to slightly lower projected federal tax collections, expressed as a share of the U.S. economy.
"Tax Freedom Day gives us a vivid representation of how much federal, state, and local tax revenue is collected each year to pay for government goods and services," Tax Foundation analyst Scott Greenberg told the Washington Examiner. "Arguments can be made that the tax bill is too high or too low, but in order to have an honest discussion, it's important for taxpayers to understand the cost of government. Tax Freedom Day helps people relate to that cost."