Tax Freedom Day Arrives Early In 2009

According to this story on CNN, that's the earliest date since 1967. It's eight days earlier than 2008's Tax Freedom Day, and fourteen days earlier than 2007's. The article pointed out two stated reasons for the earlier date: The reduced tax collections driven by the recession as well as Obama's stimulus package and it's temporary tax cuts in 2009 and 2010.

The Tax Foundation points out that Tax Freedom Day also varies by state, with Alaska weighing in best at 82 days, and residents of Connecticut having to work a full 120 days to pay last year's taxes.

A report from the Tax Foundation also cites the five categories of tax that comprise the tax burden. Individual income taxes ( federal and state ), require 38 days of work. Payroll taxes account for the next 27 days. Sales and excise taxes take 15 days to cover. Corporate income taxes are another 6 days, and property taxes comprise 12 days. The last 4 days cover other miscellaneous taxes, motor vehicle registration taxes, severance taxes, and finally, estate taxes.

This calculation is believed to be a good measure to answer the question "What price is the nation paying for government?" The 103 day wait means that we pay, on average, 28.2 percent of our income to cover our previous year's tax bill.

This article is by the staff at billeater.com, which offers hundreds of tips on how to save money.