Today is Tax Freedom Day, a designation that may not be well-known but is important to everyone who earns a paycheck, according to the Utah Taxpayers Association.
"It's the day when you can quit working just to pay the tax collector and start spending your hard-earned dollars on other things," said Jack Olson, head of the tax watchdog organization.Tax Freedom Day, figured annually by the Tax Foundation of Washington, D.C., assumes that every dollar earned prior to the designated day went to pay federal, state and local taxes.
The last two years, the average taxpayer worked 124 days to earn enough money to pay taxes. In 1929, Tax Freedom Day was Feb. 9. In 1933, it took until March to reach it. In 1943, the date fell in April.
The day most frequently associated with taxes, April 15, was also Tax Freedom Day in 1964 and 1965. It was not until 1969 that it took until May to reach Tax Freedom Day.
Another way of looking at how much time is spent working to pay taxes, according to the UTA. The average taxpayer in 1989 will work two hours and 43 minutes of an 8-hour workday to earn enough to cover taxes owed.
That compares with one hour and 25 minutes to earn the money spent on housing; 59 minutes for food and tobacco; 40 minutes for transportation; 39 minutes for medical care; 24 minutes for clothing; 20 minutes for recreation and 50 minutes for every other expenditure.