Tax Freedom Day® to Arrive April 23 in 2008

America Will Work Three Days Less to Pay Taxes in 2008 than in 2007; Stimulus Rebates Push Date of Celebration Up

Tax Freedom Day® will fall on April 23 in 2008, according to the Tax Foundation's annual calculation using the latest government data on income and taxes. (Click here for more details).

That's three days earlier than in 2007. Stimulus rebates and a projection of slow growth in 2008 are the principal reasons for the earlier celebration.

The study is Tax Foundation Special Report No. 160, “America Celebrates Tax Freedom Day®,” by Tax Foundation senior economist Gerald Prante and Tax Foundation president Scott Hodge.

In addition to announcing the nation’s Tax Freedom Day®, the new study compares tax payments to other major consumer expenditures, 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.

Taxes vs. Other Expenses

"Government continues to dominate the American taxpayer's budget,” said Tax Foundation president Scott Hodge. "Americans will still spend more on taxes in 2008 than they will spend on food, clothing and housing combined."

In 2008, Americans will work 74 days to afford their federal taxes and 39 more days to pay state and local taxes. Meanwhile, buying food requires 35 days of work, clothing 13 days, and housing 60 days. Other major categories are health and medical care (50 days), transportation (29 days), and recreation (21 days).