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Tax Freedom Day: April 11
As a group, Americans will have earned enough to pay their 2004 taxes, according to a new study.
April 9, 2004: 2:57 PM EDT
By Jeanne Sahadi, CNN/Money senior writer

NEW YORK (CNN/Money) - On April 11, Americans will have earned enough money to pay their federal, state and local tax bills for 2004. On average, Americans will work 65 days to pay their federal taxes and 36 more days to pay their state and local taxes.

Those are the findings of the Tax Foundation, a nonprofit tax policy research organization that, among other things, advocates tax simplification.

Every year, the Foundation calculates when Tax Freedom Day will occur. This year it comes at its earliest point in 37 years, the Foundation noted in its report released Wednesday, due to recent federal tax reductions and the fact that tax revenue growth has not kept pace with the growth rate of a post-recession economy.

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While April 11 is the day the country as a whole will start earning money to pay for something other than taxes, that's not necessarily the case for residents of every state.

That's because some states are less tax-friendly than others -- for a look at which states these are, click here -- but also because the residents of one state may have a heavier federal tax burden than residents of another state.

For instance, residents of Connecticut will wait the longest for their Tax Freedom Day -- April 28 -- while residents of Mississippi will have earned enough to pay all their tax bills by April 2. One major reason for the difference: Connecticut residents earn more per-capita income than residents of Mississippi and owe more federal income tax as a result, said Bill Ahern, spokesman for the Tax Foundation.

Residents of Connecticut, whose income per capita is $48,489, will work 118 days to satisfy their tax bill and pay $15,681 a head. Mississippians, on the other hand, whose income per capita is $25,814, will work 92 days and pay $6,513 a head.

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The state with the earliest tax freedom day has already passed that mark. Alaskans, whose per capita income is $36,267, earned enough to pay their taxes by March 26. They worked 85 days and paid $8,542 per person to satisfy their tax obligations.

The state is the most tax-friendly in the country, according to a separate Tax Foundation analysis, in great part because it doesn't levy an income tax or a sales tax. Instead, it collects substantial revenue -- so much so that it pays a surplus back to residents -- through a severance tax on companies for oil extraction.  Top of page




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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.