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How Much Do Americans Spend On Taxes? The Number Will STUN You

Ya think your taxes are too high?

You’re right. They are so high that Americans will pay more on taxes than food, shelter and clothing in 2016, as the Tax Foundation revealed in its annual Tax Freedom Day report.

Americans will spend $1.629 trillion on food, $360 billion on clothing and $2.117 trillion on housing, for a grand total of $4.105 trillion. But that number will be dwarfed by the $4.9 trillion to be coughed up for taxes this year, comprised of $3.34 trillion in federal taxes and $1.64 trillion in state and local taxes.

The Tax Foundation annually estimates the day of the year by which Americans will have “earned enough money to pay its total tax bill for year,” called the “Tax Freedom Day.” In 2016, that day will fall on April 24, but if federal borrowing is added to the mix, the date would be May 10.

The foundation states, “This year, Americans will work the longest to pay federal, state, and local individual income taxes (46 days). Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (9 days), and property taxes (11 days). The remaining 7 days are spent paying estate and inheritance taxes, customs duties, and other taxes.”

The foundation estimated each state’s Tax Freedom Day; Mississippi was the earliest, on April 5, followed by Tennessee on April 6 and Louisiana on April 7. The latest Tax Freedom Day was found in Connecticut on May 21; New Jersey’s was May 12 and New York’s was May 11.

As an example of how times have changed, Tax Freedom Day in the first 10 years of the 20th century occurred in mid-January.

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