Tax Freedom Day—when Americans stop working to pay all their taxes and start making money for themselves—is coming later in Rhode Island than it is for the country as a whole. Below is more from the Tax Foundation:
Tax Freedom Day – the date on which Americans will have worked long enough to have earned enough money to pay this year’s tax obligations at the federal, state and local levels – will fall on Monday, April 12, 2010 for residents of Rhode Island. The date for all Americans will be Friday, April 9, 2010.
Tax Freedom Day answers the basic question, “What price is the nation paying for government?” An official government figure for total tax collections is divided by the nation’s total income. The answer this year is that taxes will amount to 26.89 percent of our income, and the stretch of 99 days from January 1 to April 9 is 26.89 percent of the year. Overall, Americans will pay more taxes in 2010 than they will spend on food, clothing and shelter combined.
In the study, “America Celebrates Tax Freedom Day,” our staff economist Kail Padgitt traces the course of America ’s tax burden since 1900, examines the composition of today’s tax burden by type of tax, and calculates a Tax Freedom Day for each state.
Each state has its own Tax Freedom Day. Alaska and Louisiana celebrate Tax Freedom Day earliest on March 26, the 85th day of the year. Connecticut celebrates last on April 27, the 117th day of the year. Joining Connecticut in the latest celebrations are New Jersey (April 25), New York (April 23), Maryland (April 19) and Washington (April 15). Alaska and Louisiana are joined in early celebration by Mississippi (March 28), South Dakota (March 29) and West Virginia (March 30).
For more information, go to http://www.taxfoundation.org/taxfreedomday.