Every year the Tax Foundation, a think tank, announces Tax Freedom Day, which is the day when everyone has theoretically made enough to pay off all their taxes. Nationwide, that day for 2012 was April 17. Connecticut residents, however, have to work much longer.
Connecticut residents have to work until May 5 to make enough money to pay off their tax burden. The second worst states, New York and New Jersey, have their Tax Freedom Day on May 1. The states that had to work the least were Louisiana and Mississippi (April 1).
According to the group, federal tax burdens are the lowest they’ve been in a while, but that isn’t necessarily healthy.
Since 2007, stimulus tax cuts and a weakening economy have pushed Tax Freedom Day earlier still. In 2009, Tax Freedom Day was on April 10, earlier than any time since Lyndon Johnson was in the White House. Meanwhile, government spending rose, leading to a large gap between revenue and spending. This year marks the fourth year in a row of the federal budget deficit exceeding $1 trillion.
