April 17, 2012
Today is is Tax Day, when Americans hand over their hard earned money to Uncle Sam. Today is also Tax Freedom Day, the day when Americans earn just enough money to pay off the federal, state and local tax bill.
The Heritage Foundation’s Mike Brownfield elaborates:
For the first 111 days of the year, everything you earned went straight to Uncle Sam. Compare that to back in 1900, when Americans paid only 5.9% of their income in taxes and Tax Freedom Day came on January 22.
Each year, it takes hard working Americans longer and longer to earn enough money to pay their share of taxes. And the future is grim.
In January of 2013, Americans will be hit with waves of expiring tax cuts, which will lead to a crippling $494 billion tax hike known as Taxmageddon. If Congress fails to act, Heritage’s Curtis Dubay reports, “American households can expect to face an average tax increase of $3,800 and that 70 percent of Taxmageddon’s impact will fall directly on low-income and middle-income families, leaving them with $346 billion less to spend”
Most Americans would agree that a $494 billion tax increases is a bad idea. President Obama, however, seems unfazed and in fact has focused on adding another tax increase, the politically-inspired Buffett Rule.
How do you think Congress should address our ever rising tax rates?