Paying back Uncle Sam in 99 days
This year, it will take Americans 99 days to render unto Caesar (pronounced "Uncle Sam") what is his.
Tax Freedom Day is April 9 for the average U.S. taxpayer, meaning it will take 99 days to pay our taxes in 2010.
For Georgians, Tax Freedom Day is one day earlier. It will take those of us in the Peach State 98 days to settle up, according to calculations of the Tax Foundation, a group that has monitored such data since 1948. On average, Americans will pay 26.9 percent of their yearly income toward taxes.
Believe it or not, this year's number is lower than in recent years. In 2000, it took Americans 121 days of work to pay off their share of federal, state and local taxes. Last year, it took us 98 days, with the government taking about 26.6 percent of our yearly income. Prior to that, Americans hadn't paid so little in taxes since 1965.
Why is this happening in the midst of a recession? The methodology behind Tax Freedom Day, developed in 1948 and used to calculate taxation percentages dating back to 1900, does not count rising federal government expenditures. The federal government spends more than it collects in taxes, according to Tax Foundation findings, posted on www.taxfoundation.org.
Most states, including Georgia, are, unlike the federal government, required to pass a balanced budget each year.
If Americans were required to pay for all of government spending this year, including deficit spending, we'd have to work until May 17.
Every state has its own Tax Freedom Day because taxes vary state by state, according to the Tax Foundation. Higher-income states pay more to Uncle Sam. Alaska, Lousiana, Mississippi, South Dakota and West Virgina were the earliest states this year to have Tax Freedom Days. Georgia falls in the middle of the pack.
This year is the final year of tax cuts Congress passed under President George W. Bush. Similar tax cuts are in place under President Barack Obama's administration.
