America's "Tax Freedom Day," when you've earned enough to pay off your yearly tax bill, arrived five days later this year because of new Obamacare taxes and higher payroll taxes, according to the Tax Foundation's annual survey.
It came Thursday, April 18, nearly a week later than last year "due mainly to the fiscal cliff deal that raised federal taxes on individual income and payroll. Additionally, the Affordable Care Act's investment tax and excise tax went into effect," said the foundation.
But it doesn't mean that Americans are done paying taxes for the year. The Tax Freedom Day calculation simply means that if you set aside every cent of your paycheck for your expected 2013 federal, state and local tax bill, you would finally have earned enough to pay it off by today. In other words, taxes consume three and a half months of work.
"This year, Americans will work five days later than in 2012 to pay all of their taxes. The total tax bill at all levels comes to approximately $4.2 trillion, or 29.4% of their total income," said foundation economist William McBride. "That means Americans will pay more in taxes in 2013 than they will spend on food, clothing, and housing combined."
Here's the breakdown from the foundation: Individual income taxes - including federal, state and local - require 40 days of work. Payroll taxes take another 24 days of work. Sales and excise taxes, mostly state and local, take 15 days to pay off. Property taxes take 12 days, and corporate income taxes take another nine days.