Each year the Tax Foundation releases the date for national Tax Freedom Day. They calculate "when the nation as a whole has earned enough money to pay its total tax bill for the year." Based on this year's data, Tax Freedom Day falls on April 18.
According to their study, Americans will pay $2.76 trillion in federal taxes and $1.45 trillion in state taxes in 2013. This is equal to 29.4 percent of income or 108 days of the year.
Tax Freedom Day was five days earlier in 2012. The Tax Foundation finds that this is due to the fiscal cliff deal and other tax increases. Individual income taxes and payroll taxes were raised under the deal and ObamaCare's investment and excise tax were implemented.
The economy is still expected to recover slowly which will boost individual income and tax revenues for the state and federal governments.
Wisconsin's Tax Freedom Day is one of the latest compared to other states. While Connecticut is the latest state to observe this day on May 13, Wisconsin ranks 9th latest on April 20. The study finds that high-income states have a later Tax Freedom Day, while states with lower income and lower tax burdens are earlier.
States like Mississippi and Louisiana, which have lower tax burdens, have the earliest Tax Freedom Days both falling on March 29.
The Tax Foundation has their "economists calculate Tax Freedom Day using federal budget projections, data from the U.S. Census and the Bureau of Economic Analysis, and projections of state and local taxes."