US Taxpayers Work 2 Hours Daily for Taxes
May 6, 2011 Taxation in USA
The average US taxpayer with an eight hour work day will spend over a quarter of their time working to pay their taxes.
A new study has been released by the Tax Foundation, an independent think tank researching US federal and state tax policies, quantifying the state and federal taxes faced by taxpayers with full-time employment. The new research suggests that the average worker will need to spend 2 hours and 13 minutes per eight-hour workday in order to merely meet their tax requirements. The time is equivalent to approximately 27.7 percent of a standard working day. Individual income taxes account for the biggest portion of the time, requiring approximately 46 minutes per day. Social insurance tax obligations account for 29 minutes of work, and sales and excise taxes require 20 minutes, with property and corporate income taxes needing 16 minutes each.
Due to variability in the rates of state and local taxes, workers in different geographic locations will be faced with different time frames to meet their tax obligations. Taxpayers in the state of Connecticut bore the largest tax liabilities, spending 2 hours and 40 minutes each day working for their taxes. While workers in Mississippi finished the earliest, with 1 hour and 51 minutes of work, due to the low levels of state and local taxation.
The workload calculations do not take into account the US federal budget deficit. According to the research, in order for the federal government to collect the revenues necessary to cover the budget deficit, taxes would need to be raised to a point where individuals would work for 3 hours and 7 minutes each day, just to meet their tax obligations.
Photo by jeku arce