US Budget Adjusted Tax Freedom Day on May 17

May 14, 2010 Taxation in USA

HOW MUCH MONEY DOES OBAMA THINK IS TOO MUCH?According to new data publicized by the US Tax Foundation, Tax Freedom Day (TFD) will fall on May 17th in the US, if calculations take into account the scale of the country’s currently low tax collections and extensive Government budget deficit.

On May 13th the US Tax Foundation, an independent body aiming to educate taxpayers on national taxation matters, issued a statement drawing attention to the US Federal Budget deficit and its effect on the date of the TFD. Kail Padgitt, the author of the annual Tax Freedom Day Report, explained the amended TFD date, saying, “…if current taxes had to cover the deficit this year… Americans would be working until Monday, May 17, 2010, before earning enough money to pay for government.”

In 2010 the un-adjusted TFD fell on April 9th, and was celebrated for being two weeks earlier than in the year 2007. The Tax Foundation warned that this is not necessarily a positive, as the date changed due to the recession lowering tax collections disproportionately faster than incomes. The imbalance led to a growing Federal Budget deficit, which will eventually result in higher tax burdens in years to come. The adjusted TFD date attempts to balance the nominal TFD and the Government’s deficits. Since the release of the original 2010 Tax Freedom Day report the US Government revised its projected total annual Federal deficit upwards by USD 0.2 trillion, potentially moving the TFD to an even later date.

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