Happy Tax Freedom Day, Michigan!
It took Michiganders 105 days to earn enough income to pay all their taxes
Today [April 16] is Tax Freedom Day for Michigan — the day of the year that marks when Michiganders as a whole have earned enough income to pay all of the taxes they owe local, state and federal governments. For the first 105 days of 2019, all the income earned in this state will eventually end up in government coffers. But from here on out, Michiganders hard-earned money will finally be theirs to keep.
Michigan’s Tax Freedom Day is ranked 30th in the country. Alaska has the earliest Tax Freedom Day, occurring on March 25, while New York has the latest with May 3. Taxation levels are important factors influencing where people can find jobs and earn a living. While Michigan has improved its overall tax burden ranking in recent years, there is still a long way to go.
The Tax Foundation, a nonpartisan think tank in Washington, D.C., notes the following:
- In 2019, Americans will pay $3.4 trillion in federal taxes and $1.8 trillion in state and local taxes, for a total bill of over $5.2 trillion, or 29 percent of the nation’s income.
- Americans will collectively spend more on taxes in 2019 than they will on food, clothing, and housing combined.
- If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 22 days later, on May 8.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.