The Tax Foundation has performed its annual calculation of Tax Freedom Day – “the day when the nation as a whole has earned enough money to pay its total tax bill for the year.” In 2013, Uncle Sam will be riding on our backs for five days longer than 2012, because we won’t pay off the government until April 18, 2013.
The cause of our delayed freedom is – you guessed it – the “fiscal cliff” deal and ObamaCare. Wait, what? ObamaCare is a gigantic tax increase? The Devil, you say!
Tax Freedom Day is five days later than last year, due mainly to the fiscal cliff deal that raised federal taxes on individual income and payroll. Additionally, the Affordable Care Act???s investment tax and excise tax went into effect. Finally, despite these tax increases, the economy is expected to continue its slow recovery, boosting profits, incomes, and tax revenues.
How’s everyone been enjoying that “slow recovery” for the last four years? Too bad we can’t lighten the tax burden and have a fast recovery. Is it impolite to ask why the Obamanomics theory of redistribution and welfare as “stimulus” hasn’t given us a faster recovery, or should we wait another five years before jumping to any conclusions?
The Tax Foundation admits that the concept behind Tax Freedom Day requires a bit of adjustment in this era of madcap deficit spending, because we won’t actually have paid off the government’s bills on April 18.
Since 2002, federal expenses have exceeded federal revenues, with the budget deficit exceeding $1 trillion annually from 2009 to 2012. In 2013, the deficit will come down slightly to $833 billion. If we include this annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur on May 9, 21 days later. The latest ever deficit-inclusive Tax Freedom Day occurred during World War II, on May 21, 1945.
Annual federal borrowing represents future taxes owed? Has the Sainted Middle Class been informed of this? Well, don’t worry, the Democrats will break it to them soon enough. There will be hugs, and weeping, and mournful talk of bills coming due.
The old chestnut that “time is money” contains great wisdom. Time is property, so when the government takes our money, it is taking control of our time. How long should a Constitutional republic labor to pay off its government overhead each year? How many days of the calendar should belong to the State? Before you answer, consider that Tax Freedom Day includes state taxes, so it’s going to arrive considerably later in high tax states: May 13 in Connecticut, May 6 in New York, May 4 in New Jersey, to name a few.
$2.76 trillion in federal taxes, plus $1.45 trillion in state taxes, 29.4 percent of our total national income… and it still isn’t enough. In fact, according to the Left, that burden is so low that certain Americans are getting away with highway robbery. (You may consider that a pun on President Obama’s mania for spending further billions on “infrastructure.”) When do they think Tax Freedom Day should be?