Dominic Calabro
In mid-April every year, Americans take a quote from Benjamin Franklin to heart and to the bank.
He said that “nothing in life can be certain except death and taxes.”
At the federal, state and local level, Americans are subjected to various taxes that chip away at their paychecks. While Floridians enjoy one of the least burdensome state tax systems, local and federal taxes still take a toll on their wallets. What they don’t know is just how much of their time is devoted to paying their tax bill.
Florida TaxWatch research has found that, assuming the average eight-hour workday, the average Floridian must work one hour and 41 minutes of the eight-hour workday to pay off his or her daily federal tax burden. To pay off their state tax burden, they need to work an additional 24 minutes and 19 minutes is needed for local tax obligations. Overall, the average Floridian works two hours and 24 minutes every day of the year just to pay all his or her taxes.
This is why we celebrate Taxpayer Independence Day on April 20, the first day in the calendar year that Florida taxpayers, on average, begin earning income that does not go toward federal, state and local taxes. This symbolic day puts taxpayers’ responsibility in perspective, showing us how much of a presence government has in our lives.
Taxes are necessary to pay for services, but they make up a large portion of Americans’ expenses. In fact, the largest expense in the average Floridian’s life is taxes, more than food, housing and clothing combined.
While it still takes about 110 days, or just under a third of year, for Floridians to pay their tax bill, residents still enjoy their independence from taxes sooner than most Americans.
Florida workers will pay off their tax bill sooner than people in 21 other states and three days before the national Taxpayer Independence Day, based on calculations by the Tax Foundation. Residents in states like California and New York will have to work longer than Floridians to pay off their tax burden because of higher state and local taxes.
However, Taxpayer Independence Day is still later than it was just four years ago. In 2012, Taxpayer Independence Day was on April 9. This is the first year since 2011 that taxpayers didn’t have to work longer than the year before to pay their tax bill. That’s mainly because personal incomes grew. As the federal government increases taxes, it is entirely possible that Floridians will celebrate Taxpayer Independence Day later in the year in 2017.
Here in Florida we’re fortunate to have great public servants dedicated to promoting smart tax reform, cutting taxes when it makes sense. In the last few years alone, the state Legislature has cut the communications service tax, the sales tax on manufacturing equipment and various other taxes. Florida is lucky to have a tax climate that stimulates business growth and keeps money in the pockets of hard-working families.
For the full TaxWatch analysis on Taxpayer Independence Day, click here.
For more on how Florida’s tax burden stacks up against the rest of the nation, read Florida TaxWatch’s How Florida Compares: Taxes.
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Dominic Calabro is the President & CEO of Florida TaxWatch, the state’s premier taxpayer watchdog for more than 35 years. Column courtesy of Context Florida.
