April 30th is the day you stop working for the government and start working for yourself, according to the Tax Foundation’s annual estimate dubbed “Tax freedom day.” CNNMoney explains:

Tax freedom day is theoretical because it assumes we’ve been working 7 days a week since the start of the year, and that we don’t spend anything we make. The 120 days from Jan. 1 through April 30 represents the time it will take the nation as a whole to earn enough to pay off all of the taxes that will be levied against us this year.

Breaking that 120 days down, the Tax Foundation estimates it will take:

* 43 days of work to pay off federal, state and local income taxes
* 30 days to pay off payroll taxes (for Social Security and Medicare)
* 16 days to pay off sales and excise taxes
* 14 days to pay off corporate income taxes (This assumes that a tax on a business is passed on to its customers, employees and shareholders in terms of higher prices, lower paychecks and less shareholder value.)
* 12 days to pay off property taxes
* 4 days to pay off other taxes (e.g., customs duties)
* 1 day to pay off estate and gift taxes

Tax Freedom Day varies by state. Time to move from Connecitcut (where Tax Freedom day is May 20), to Alabama (where it’s April 12)….—MEGHANN MARCO

Americans work 4 months to pay this year’s taxes [CNNMoney]
(Photo: Brent and Marylinn)

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.