economy's overall average tax burden-not the tax burden of the "average" American, which is how it is often misinterpreted by members of the media. The Tax Foundation defends its methodology by pointing out that Tax Freedom Day is the U.S. The larger tax bills associated with higher incomes increases the average tax burden above that of most Americans. That is, the tax burdens of most Americans are substantially overstated by Tax Freedom Day. In America, while Tax Freedom Day presents an "average American" tax burden, it is not a tax burden typical for an American. For example, a 2005 study by Osgoode Hall Law Professor Neil Brooks argued that the Fraser Institute's Tax Freedom Day analysis includes flawed accounting, including the exclusion of several important forms of income and overstating tax figures, moving the date nearly two months later. However, the Fraser Institute's figures have been disputed. Mathematical įor Canada, the Fraser Institute also includes a "Personal Tax Freedom Day Calculator" that estimates a customized Tax Freedom Day based on additional variables such as age of household head, sex of household head, marital status and number of children. After all, they're the ones living in the house, not the bank manager. It would make just as much sense to declare an annual "mortgage freedom day", in order to let mortgage owners know what day they "stop working for the bank and start working for themselves".But who cares? Homeowners are not really "working for the bank" they're merely financing their own consumption. In the book Filthy Lucre: Economics for People Who Hate Capitalism, philosopher Joseph Heath criticizes the idea that tax-paying is inherently different from consumption: 2010 Tax Freedom Days for the "Average Joe" in the European Union, as published in L'Anglophone Country Consequently, a huge share of Belgium’s tax burden is borne by the working population. figures count revenue from all taxes (including those on corporate profits, petrol, cigarettes, &c.) and thus present a more complete picture of the country’s total tax burden," adding that it is "an average applied to all Belgians – not all Belgian workers in 2008, less than half of Belgium’s population (4.99 million working out of 10.67 million citizens) was legally working. Regarding the discrepancy between their calculation of August 3 as the typical Belgian worker's Tax Freedom Day and that of PriceWaterhouseCoopers (PWC), L'Anglophone's authors wrote: Income taxes, social security contributions (by the employee and the employer) and projected VAT contributions were included in the calculations. Archived October 20, 2013, at the Wayback MachineĬentre for Policy and Governance «Centar za politike i upravljanje»Ī 2010 study published in L'Anglophone, a Brussels newspaper, compared the tax burdens of "Average Joes" in each of the 27 EU member states and projected the Tax Freedom Day for workers earning a typical wage. Archived December 20, 2018, at the Wayback Machine The Public Association «Discussion and Analytical Society Liberal Club» Instituto Brasileiro de Planejamento Tributario Archived June 25, 2016, at the Wayback MachineĮesti Maksumaksjate Liit (Estonian Taxpayers Association)įoundation for the Advancement of Liberty and Spanish Taxpayers' Union Tax Freedom Days for countries by date Country Due to the different ways that nations collect and categorize public finance data, however, Tax Freedom Days are not necessarily directly comparable from one country to another. According to the Tax Foundation, Tax Freedom Day reports are currently being published in eight countries. Many other companies and organizations in countries throughout the world now produce their own "Tax Freedom Day" analysis. In the United States, the "Tax Freedom Day" is annually calculated by the Tax Foundation, a Washington, D.C.-based think tank.
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