On 17 April 2012 the United States celebrated its annual Tax Freedom Day. Wikipedia explains the concept:
“Tax Freedom DayÂ is the first day of the year in which aÂ nationÂ as a whole has theoretically earned enough income to fund its annualÂ tax burden.Â (…)Â Every dollar that is officially considered income by the government is counted, and every payment to the government that is officially considered a tax is counted. Taxes at all levels of governmentâ€”local, state and federalâ€”are included.”
In Canada, Tax Freedom Day is calculated by the Fraser Institute. In 2011, it fell on 6 June. This was the 157th day of the year. According to their research study:
“In 2011, the average Canadian family earned $93,831 in income and paid a total of $39,960 in taxes (42.6 per cent).”
If federal and provincial budget deficits were balanced through taxation (as opposed to equally devastating inflation), Tax Freedom Day would be even further delayed:
“In 2011, the federal government and most provincial governments expect to run budget deficits. Since todayâ€™s deficits must one day be paid for by taxes, deficits should be considered as deferred taxation. Had Canadian governments increased taxes to balance their budgets, the average Canadian family would have worked until June 21 to pay the tax bill. In other words, the Balanced Budget Tax Freedom Day arrives on June 22, 16 days later than Tax Freedom Day.”
This is a necessary consequence of the cradle to grave welfare-warfare state. To paraphrase Ron Paul, Tax Freedom Day should serve as a frightening reminder of how much liberty we’ve lost.
You deserve to keep the fruits of your labour.