Common Sense: Tax Freedom Day
April 15 may be the day federal and state taxes are due, but it is not the actual Tax Freedom Day for most Americans. Tax Freedom Day as defined by the Tax Foundation is the day when the nation as a whole has earned enough money to pay its total tax bill for the year or, in other words, the day you as an individual have earned enough to have satisfied all your tax obligations.
Essentially, all your earnings to this date go into paying your taxes – not feeding your family, paying your rent or saving for your retirement. Of course, Tax Freedom Day will vary from state to state.
Nationally, Tax Freedom Day is April 24 in 2015. It was April 21 in 2014 and April 18 in 2013. This is one circumstance where later is definitely not better.