Tax Freedom Day is the day when our collective income as a nation is enough to pay our collective federal and state taxes for the year. Considered in that respect, all of the income we earn after that point may be considered “tax-free.”
Tax Freedom Day is calculated in April of each year using projections from the federal budget, U.S. Census data, and information from the Bureau of Economic Analysis (BEA). This holiday of sorts was invented by a Florida businessman in 1948 who deeded the concept to the Tax Foundation in 1971.
The Tax Foundation has been regularly calculating Tax Freedom Day ever since. Data is available for prior years on the Tax Foundation’s website, going all the way back to 1900 when the big day was January 23rd.
These days it may feel like Tax Freedom Day takes place around November, but the situation is not quite that dire. Tax Freedom Day arrives today, the 114th day of the year, three days later than in 2014. It is also six days …