It's tax filing week - when is tax freedom day?
April 15th has come and gone. Since it fell on a weekend, Americans have until Tuesday to submit federal tax returns. But that won't mean you're done with taxes for the year. Tax filing day should not be confused with tax freedom day.
Tax freedom day is the day when Americans have earned enough money to pay their total tax bill for the year. In other words, in many states, for the first three and a half months of the year, you've worked for the government. Unfortunately, as the federal burden increase, the national tax freedom day seems to be coming later and later each year. This year, tax freedom day arrives on April 18th nationally.
But tax freedom day also varies by state, as each state has its own localized tax burden. Idaho and Montana have typically enjoyed earlier tax freedom days. Washington state's tax freedom day is coming later and later. It will likely increase again next year as the full impact of the new income tax on capital gains is realized.
So go ahead, enjoy getting your taxes submitted this week. In Idaho, Wyoming and Montana, you've worked long enough to pay your burden.
For Washingtonians, don't fall into the trap of believing you're done working for the government.