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.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
With more than a million new job listings every month, Craigslist is flush with opportunities in every industry. Seasonal retail jobs, research assistants, project managers, tanning salon...
Read More →
Selling options is an aspect of trading that investors should become familiar with. Sometimes, it is in the investor’s best interest to sell, or write, options. When you write options, you'll have...
Read More →
Over my 15 years of meeting with company management teams, one thing became abundantly clear. The ...
Read More →
While their approval rating may be at some of the lowest levels ever, it's financially a good time to be a member of Congress...
Read More →
We tend to shove unpleasant possibilities into the back of our minds. But the truth is, you can’t afford to assume you'll never have to deal with a true worst-case scenario. So today I'm...
Read More →
