by Mitch Kokai
Senior Political Analyst, John Locke Foundation
The Tax Foundation celebrates Tax Freedom Day today.
North Carolina already has enjoyed five days of tax freedom this year. Our April 11 Tax Freedom Day ranks us No. 22 in the nation.
Tax Freedom Day® is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income. In 2019, Americans will pay $3.42 trillion in federal taxes and $1.86 trillion in state and local taxes, for a total tax bill of $5.29 trillion, or 29 percent of national income. This year, Tax Freedom Day falls on April 16, or 105 days into the year.
What Taxes Do We Pay?
This year, Americans will work the longest to pay federal, state, and local individual income taxes (42 days). Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (5 days), and property taxes (11 days). The remaining six days are spent paying estate and inheritance taxes, customs duties, and other taxes.