New Yorker's will celebrate Tax Freedom Day on May 16th this year – the second latest freedom day in the nation, according to an analysis from the Taxpayer Foundation.
The analysis, America Celebrates Tax Freedom Day, calculates the date on which taxpayers have earned enough to pay federal, state and local taxes. National Tax Freedom Day will fall April 30 this year – two days later than the date in 2006.
“In 2007 Americans will work another 41 days to afford their state and local taxes,” the Tax Foundation's report says. “That makes taxation a bigger financial burden than housing and household operation (62 days), health and medical care (52 days), food (30 days), transportation (30 days), recreation (22 days), or clothing and accessories (13 days).”
Taxpayers in Connecticut have to wait the longest to celebrate Tax Freedom Day, which will fall on May 20th. New York (May 16), New Jersey (May 10), Vermont (May 9), and Rhode Island (May 9) have the five latest dates in the country. Taxpayers in these states work longer to pay taxes in part because of the progressive federal income tax, the report said.
“States with large metropolitan areas offer higher-paying jobs, and as a result, many of the citizens earn enough to pay income tax at the highest rates--currently 25%, 28%, 33% and 35%,” the report says. “As a result, they must work longer to pay their disproportionate share of the tax burden.”
The Tax Foundation's report is available at www.taxfoundation.org/taxfreedomday/.