Tax Freedom Day comes early in North Carolina - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

Tax Freedom Day comes early in North Carolina

Posted by Debra Worley - email

WASHINGTON, DC (WECT) - North Carolinians will be able to celebrate Tax Freedom Day a few days earlier than in 2008.

According to the Tax Foundation, Tax Freedom Day will come eight days earlier than in 2008 because the recession has reduced tax collections even faster than it has reduced income, and the stimulus package includes large temporarily tax cuts for 2009 and 2010.

The day will fall on Thursday, April 9 for residents of North Carolina and Monday, April 13 for all Americans.

Tax Freedom Day is the first day of the year in which a nation as a whole has theoretically earned enough income to fund its annual tax burden.

The Tax Foundation uses the day as a tool to show the proportion of national income diverted to fund the annual cost of government programs. 

To calculate Tax Freedom Day, an official government figure for total tax collections is divided by the nation's total income.  Income and tax data are then parsed out to the states, yielding 50 state-specific Tax Freedom Days.

Alaska had the lowest average tax burden in 2009 and celebrated their Tax Freedom Day in March, while Connecticut is expected to celebrate last, April 30.  According to the Tax Foundation, because Connecticut's income per capita is higher than in any other state, its residents pay extraordinarily high federal income taxes.

For more information about Tax Freedom Day, click here.

 

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