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Extra4/16/2007 12:01 AM ET

You'll work 4 months just to pay taxes

Continued from page 1

Critics, however, contend that even the words tax "freedom" and "burden" are heavily freighted. "It's quite misleading," warns Karen Kraut of United for a Fair Economy, a nonprofit social-justice group. "By using the word 'freedom,' Tax Freedom Day is carefully constructed to associate taxes with freedom's opposite -- slavery, incarceration, oppression -- and promotes the idea that taxes are vile."

Other critics take issue with the way the foundation calculates the date. The Center on Budget and Policy Priorities, a D.C. think tank representing the interests of low-income families in debates on budget and tax policies, says middle-income Americans "pay significantly less in taxes as a share of their income than the Tax Foundation implies."

The problem has to do with how "average" is defined. The foundation uses the mathematical average: total wages divided by total taxes. But the think tank argues that because the tax system is progressive, people with higher incomes pay a greater percentage of their incomes in taxes. Though the media often refers to Tax Freedom Day as the date when the average American has "finished" working for the government, the think tank says families in the middle of the income spectrum work 40% fewer days than the Tax Freedom Day "average."

Yet some observers believe that because of hidden fees and accounting artifices, Americans pay even higher taxes than the Tax Foundation asserts. (See "Your real tax rate: 40%.")

How about 'Tax Pride Day'?

Many Republicans and Libertarians say taxes are detrimental to the economic health of the country. This belief was distilled in 2003 in a Tax Freedom Day opinion piece in the Los Angeles Times. David and George Marotta, both financial planners, wrote: "Many economists believe we already are well beyond the level at which high taxes drive down productivity for the most productive Americans; hence tax cuts for above-average earners, who pay most taxes, will result in increased economic growth and more taxes being collected."

The Marottas invoked an analogy attributed to a finance minister in the court of France's Louis XIV who compared the art of taxation to plucking a goose: to obtain the most feathers with the least amount of hissing.

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Kraut, of United for a Fair Economy, would use a different metaphor. She thinks of taxation as "a potluck dinner where everybody contributes a part of the meal, and together a great feast is created for all to share." She believes Tax Freedom Day should be renamed "Tax Pride Day," a celebration of the "great country we've built together, paid for with our taxes."

Through the decades*

 
YearTax Freedom DayTaxes as % of income

1900

Jan. 22

5.9%

1910

Jan. 19

5.0%

1920

Feb. 13

12.0%

1930

Feb. 12

11.6%

1940

March 7

18.0%

1950

April 1

24.9%

1960

April 12

27.9%

1970

April 20

29.9%

1980

April 22

30.7%

1990

April 23

30.8%

2000

May 5

34.0%

2001

May 1

33.0%

2002

April 21

30.3%

2003

April 18

29.5%

2004

April 19

29.7%

2005

April 26

31.5%

2006

April 28

32.3%

2007

April 30

32.7%

2008

April 23

30.8%

*Dates and tax loads recalculated since 2006
Note: Leap days omitted
Source: Tax Foundation calculations based on data from Office of Management and Budget, Internal Revenue Service, Congressional Research Service and National Bureau of Economic Research

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