Investor Glossary-tax freedom dayInvestor Glossary-tax freedom dayInvestor Glossary-tax freedom dayInvestor Glossary-tax freedom dayInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Freedom Day

The HTML to link to this page
 

Tax freedom day is the day the average working American citizen has theoretically earned enough income to pay their income taxes for the year. Calculation of tax freedom day is estimated total tax collections in the U.S. divided by estimated total U.S. income (as projected by the Tax Foundation) multiplied by the number of calendar days in a year (i.e 365 days). All income tax, Social Security and Medicare tax, other federal taxes, state taxes, and excise taxes are included in the tax freedom day calculation. The tax freedom day calculation assumes people work eight hours a day starting on January 1st and don't spend any of the income they earn. Individual states also have a tax freedom day. In 2010, state-level tax freedom day came earliest in Alaska and Louisiana and latest in Connecticut and New Jersey. Since its debut in 1948, tax freedom day has been as early as March 31 in 1950 and as late as May 1 in 2000. Florida businessman Dallas Hostetler first calculated tax freedom day in 1948 and every year thereafter until 1971, when he transferred his trademark on tax freedom day to the Tax Foundation.



Rate this Tax Freedom Day definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, 1031 exchange, wholly-owned subsidiary, margin rate, debt service coverage, phantom income, risk management, ex-dividend date, retained earnings, reverse mortgage, minority interest, required rate of return, FICO score, quality assurance, diluted share, open position, inflation, covered put, stock split, in escrow, cancelled check, real GDP, dividends payable, APR, liquidity ratio, FTSE, balance sheet, 1035 exchange, EBITDA, irrevocable trust, Key Rate Duration, ex-dividend, deferred tax, VIX, option premium, average price per share, implied volatility, current ratio, limit order, deferred revenue, per diem, Zero Cost Collar, annual return, 401a, stock market close, command economy, LIBOR, 144a, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use