• Tax Foundation, Inc., recently announced that May 5 was “tax freedom day” for 1992. Tax freedom day is the day on which taxpayers stop working to pay federal, state, and local taxes and begin working for themselves. Stated differently, the average taxpayer will work 126 days in 1992, or 2 hours and 49 minutes each day, to pay federal, state, and local tax bills. Tax freedom day was February 13 in 1930, April 28 in 1970, and May 5 in 1990. The much-publicized cuts in federal income taxes during the Reagan administration have not resulted in significant retreat in tax freedom day because of substantial increases in social security taxes and state income taxes. This year’s tax freedom date is a national average. The actual tax freedom day varies from state-to-state, because of variations in state taxes. For example, tax freedom day is May 23 in New York (the latest date in the nation), and April 13 in South Dakota (the earliest date in the nation).
© Copyright 1992, 1998 by Church Law & Tax Report. All rights reserved. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Church Law & Tax Report, PO Box 1098, Matthews, NC 28106. Reference Code: m51 c0492