Tax Freedom Day is just around the corner, and wouldn't you know it, Texas again ranks better than the nation as a whole.
Americans this year will pay $3 trillion in federal taxes and roughly half that in state taxes, for a total tax bill of $4.5 trillion -- or 30 percent of our income goes toward paying our tax bill.
The Tax Foundation's Liz Malm says the bad news, its taking Americans three days longer to pay this year's bill -- good news is we live in Texas.
“Nationally this year that date is April 21, that's 111 days into the year,” Malm tells KTRH News. “Texas hits that a little earlier in the year, April 13, ranking it 32 in the nation.”
“The ranking means Texas is paying it off earlier than a lot of other states,” she says. “New Jersey for example is tied with Connecticut for the last day, and their tax bill isn't paid off until May 9.”
Having no state income tax, one would think Texas would rank much higher.
“Texas does get the most revenue for state and local governments from property taxes, so that's probably the most visible form of taxation to most people,” says Malm. “That is indeed included here, but we also include any federal taxes that Texans would pay as well.”
Malm insists there is a silver lining to all this.
“As your income goes up, that means you pay more money to our very aggressive federal income tax system,” she says. “Though we're paying more in income taxes, its because we have more money to spend.”