If you were to designate all of your income to your taxes (federal, state, and local) starting with January 1, New Jersey residents would have to keep doing so until May 10, a good ten days after the national average.
MSN Money has an article including a table with the Tax Freedom Days for each state. But not everyone thinks this calculation is valid.
The [Tax Foundation] uses the mathematical average: total wages divided by total taxes. But [The Center on Budget and Policy Priorities] argues that because the tax system is progressive, people with higher incomes pay a greater percentage of their incomes in taxes. Though the media often refers to Tax Freedom Day as the date when the average American has “finished” working for the government, the think tank says families in the middle of the income spectrum work 40% fewer days than the Tax Freedom Day “average.”
Whenever you start to talk about taxes, it’s inevitable that politics come into play. Everyone has an agenda.
Updated February 10, 2011 and originally published March 28, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.