Wednesday, April 23, 2008

You've Worked 113 Days This Year - Just to Pay Your Taxes!

Today is Tax Freedom Day, the first day of the year in which the average American has earned enough income to cover their tax burden for the year. According to the Tax Foundation, we work 74 days of the year to cover federal taxes, and another 39 to pay state and local taxes. By comparison we spend 35 days working to pay for food, 60 for housing, 50 for health care, and another 13 to buy clothing.

So, what do we get for our 113 days of work to fund the government? Well, in 2007 our government spent $2,407 billion. The two biggest expenditures were Social Security (20.2%) and Defense (19%). On the lower end of the spectrum were Education (3.1%) and Energy (0.8%). So, at a time when we're facing $4 per gallon gas prices, we're spending less than 1% on energy. No wonder our economy is so screwed up!

While you're slaving away at work today you can take comfort in knowing that every penny you make the rest of the year is all for you! Well, except for everything that goes to credit cards, your mortgage, your energy bills, your gas tank...

OK, you CAN take comfort in the fact that none of your income the rest of the year will go to the government and all of the ridiculous things they spend money on. And, if you have anything left after all your other expenses, go out and buy yourself something nice. You've earned it!