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Paul Tracy

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Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated November 11, 2020

What is a Tax Freedom Day?

Tax Freedom Day is the day of the year by which the average American has earned enough money to pay his or her tax bill for the year.

How Does a Tax Freedom Day Work?

The average American spends about one-third of his or her income on federal, state, and local taxes. Accordingly, one can calculate the number of workdays required to pay this obligation.

For example, according to the Tax Foundation, the average American had to work from January 1 to April 12 -- over 100 days -- in order to pay his or her 2011 tax bill.

Why Does a Tax Freedom Day Matter?

When tax obligations on the average American rise, Tax Freedom Day gets later in the year. According to the Tax Foundation, the latest-ever Tax Freedom Day was May 1, 2000.

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Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Tax Freedom Day, then please ask Paul.

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