The "Tax Freedom Day" Scam

The Tax Foundation releases an annual report that declares a "Tax Freedom Day," the day at which "Americans...have earned enough money to pay this year's tax obligations at the federal, state and local levels." This year, that date falls on April 13.

Conservatives use the Tax Foundation report to get people riled up about the amount of taxes they pay. But the Center for Budget and Policy Priorities says the Tax Freedom Day brouhaha is deceptive. The reason is simple: The Tax Foundation only looks at taxes as a percentage of the total economy. But that doesn't take into account the reality of the average family. Because the federal tax system is progressive, the share of income that most Americans pay in federal taxes is considerably lower than the overall level of revenues as a share of total national income. In fact, about 80 percent of U.S. households pay federal tax at rates lower than the Tax Foundation’s reported average, according to the Congressional Budget Office.

But the even more fundamental fallacy is that people spend part of the year working for "the government" and the rest of the year working for themselves and their families. Government tax dollars also serve you and your family—or at least they should. Conservatives use rhetorical gimmicks like "Tax Freedom Day" to drive a wedge between government and the people (but use government to serve their friends and supporters). Progressives work to make sure government serves the public good. There's no need to declare a "tax freedom day"; we need to stay focused on making sure government works as it should for all of us.