In 2018, Americans will pay $3.4 trillion in federal taxes and $1.8 trillion in state and local taxes, for a total bill of $5.2 trillion, or 30 percent of the nation’s income. Americans will collectively spend more on taxes in 2018 than they will on food, clothing, and housing combined. Tax Freedom Day, which is the date that represents how long Americans as a whole have to work in order to pay the nation’s tax burden, fell this year on April 19, 2018. What this means is we spent 109 days this year working to pay the government, at all levels.
The situation in California is even worse! California’s top tier income tax rate is the highest in the nation at 13.3 percent, according to the Tax Foundation and the California Taxpayers Association. Per capita, Californians pay $1,991 annually in state income taxes, which ranks fourth highest in the country, according to the Tax Foundation. Continue reading