Tax Freedom Day

I have a friend that attended the anti-tax rallies that took place on April 15th. This friend is active in the local Tea Party movement and taxes are his favorite issue. Naturally like many of the tea partiers he believes Americans are overtaxed and there is a need for a reduction in services provided by Federal, State and Local governments. I believe my friend’s favorite day each year is “Tax Freedom Day” as determined by the think tank group at the Tax Foundation.

According to Tax Foundation this year’s Tax Freedom Day was April 9th, the 99th day of 2010 (1). This is the date that Tax Foundation claims all Americans will have paid enough taxes to pay for governments spending for the year. If President Obama’s $1.3 trillion dollar deficit is to be included in this calculation the actual Tax Freedom Day would really be May 17th, the 137th day of the year (2).

I wonder on what date Tax Freedom Day would be if the national debt were included in the Tax Foundation’s calculations. Currently the United States’ national debt is almost $13 trillion (3). $13 trillion represents almost 90% of our country’s Gross Domestic Product. In other words it would take 90% of everything made by everyone in the entire country for one year to pay off the national debt. My crude calculations would make October 26th, the 329th day of the year, Tax Freedom Day.

President Obama has formed a commission that is tasked with the difficult if not impossible goal of reducing the national debt and deficits. The President has promised there is no program that is sacred and everything in government will be considered with regard to saving money. This will be a very difficult objective for the commission as our nations unfunded liabilities are projected to be over $108 trillion. This is such a large number I’ll bet the calculators at the Tax Foundation will crash and burn trying to figure out when Tax Freedom Day will be.

Nearly all of this unfunded liability comes originates with programs like Social Security, Medicare and Medicaid. There are only two ways to keep these programs; either reduce benefits or raise taxes. These programs are extremely popular among voters and it will be interesting to learn which of the two choices, or a combination of both, will politicians make. It is evident that Americans are comfortable with their social programs and will not want to give them up. Personally I believe that in future years every American will be paying higher taxes.

I am sure many of the Tea Partiers like my friend have not even considered when Tax Freedom Day really is. One thing is certain though and that is Tax Freedom Day is not April 9th or May 17th or even October 26th.

My tax hating Tea Party friend will surely be saddened when he realizes that there probably never will be a Tax Freedom Day in the United States.

Carl D. Goodson
Clute, TX

Carl D. Goodson is the author of “Letters to the editor: What is your government doing to you?”

(1) www.taxfoundation.org/taxfreedomday/
(2) Ibid.
(3) www.usdebtclock.org