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Let me tell you how it will be

April 9, 2016

Here’s a prediction from the Tax Foundation.

Tax Freedom Day 2016 is April 24

Key Findings

  • This year, Tax Freedom Day falls on April 24, or 114 days into the year (excluding Leap Day).
  • Americans will pay $3.3 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total bill of almost $5.0 trillion, or 31 percent of the nation’s income.
  • Tax Freedom Day is one day earlier than last year, due to slightly lower federal tax collections as a proportion of the economy.
  • Americans will collectively spend more on taxes in 2016 than they will on food, clothing, and housing combined.
  • If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 16 days later, on May 10.
  • Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden.

What Is Tax Freedom Day?

Tax Freedom Day® is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income. In 2016, Americans will pay $3.34 trillion in federal taxes and $1.64 trillion in state and local taxes, for a total tax bill of $4.99 trillion, or 31 percent of national income. This year, Tax Freedom Day falls on April 24th, or 114 days into the year (excluding Leap Day). […]

This interesting graph accompanies the article.
TFD_charts_2016


And don’t get me started on how all this money flowing into the capital still won’t reduce the national debt. They’re spending it as fast as they can print it, I think.

Here’s another graph that comes from a Mercatus Center post about the Congressional Budget Office’s projections for national debt as a percentage of GDP.

US-Public-Debt-Projections-Continue-to-Accelerate

It’ll get worse before it gets better… assuming it ever gets better.

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