Only Connecticut and New Jersey will reach Tax Freedom Day later than New York, according to the annual study recently released by the Tax Foundation. April 23 is our day of tax reprieve, said Assemblyman Will Barclay (R,C,Iâ€”Pulaski)â€”almost two full weeks later than the national average of April 9.
Tax Freedom Day is calculated by dividing taxes collected by income earned. New Yorkers will have paid their total tax burdenâ€”federal, state and local taxesâ€”on April 23. For example, 33.6 percent of income went to taxes in 2000. This year, taxes will amount to 27 percent of income.
â€œThe annual study shows, again, how New York needs to stop creating more taxes and fees,â€ said Barclay. â€œAlbany needs to heed such studies moving forward, and pass a budget that is more within our meansâ€”one that doesnâ€™t push the Tax Freedom Day back any further and one that puts our state on par with others.â€
According to the study, if Americans were required to pay for all government spending this year, including the $1.3 trillion federal budget deficit, they would be working until May 17 before they had earned enough to pay their taxesâ€”an additional 38 days of work.
â€œI voted against last yearâ€™s budget. The spending plan it produced was fiscally abominable, and contained $8.2 billion in new taxes and fees. Our late Tax Freedom Day reflects all of this. Unfortunately, this year, taxpayers have once again been shut out of the process,â€ said Barclay. â€œI have been disappointed in this yearâ€™s budget process. Again, much of the decision-making has been behind closed doors, and we still do not have a budget, even though the deadline has passed.â€
According to the Tax Foundation, each state has its own Tax Freedom Day. Because of modest incomes and low state and local tax burdens, Alaska and Louisiana celebrate Tax Freedom Day earliest on March 26, the 85th day of the year. Connecticut celebrates last on April 27, the 117th day of the year, because income per capita is higher than in any other state. High-income states pay more in federal taxes, and they often have higher state-local taxes as well, according to the study. Joining Connecticut in the latest celebrations are New Jersey (April 25), New York (April 23), Maryland (April 19) and Washington (April 15). Alaska and Louisiana are joined in early celebration by Mississippi (March 28), South Dakota (March 29) and West Virginia (March 30). The Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.