Tax Freedom Day – the date on which Americans will have worked long enough to have earned enough money to pay this year’s tax obligations at the federal, state and local levels – will fall on Sunday for residents of Colorado.
The date for all Americans is April 13.
Colorado’s date is nine days earlier than during 2008.
There is an earlier overall date for the nation for two reasons: (1) the recession has reduced tax collections even faster than it has reduced income, and (2) the stimulus package includes large temporary tax cuts for 2009 and 2010.
Nevertheless, Americans will pay more in taxes than they will spend on food, clothing and housing combined.
However, Coloradoans aren’t the earliest celebrants of Tax Freedom Day.
According to The Tax Foundation, residents of Alaska bear the lowest average tax burden because of their modest incomes and extremely low state-and-local tax burden, and celebrated Tax Freedom Day on March 23.
Louisiana, Mississippi, South Dakota and West Virginia also experienced earlier Tax Freedom Days than Colorado.
Residents of Connecticut will celebrate last, as usual, working until the 120th day of the year, April 30, before earning enough to pay all their taxes.
Because Connecticut’s income per capita is higher than in any other state, its residents pay extraordinarily high federal income taxes. Nearby states New Jersey and New York are second and third, respectively. California and Maryland round out the top five.
For more information, visit http://www.taxfoundation.org/taxfreedomday.