Tax Freedom Day

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The Tax Freedom Day (German: Steuerfreiheitstag) is the day of a year, from an average tax payer in the country, according to certain organizations not for the payment of his taxes money must earn. The concept was developed by the Washington, DC- based Tax Foundation as an illustration of the tax burden on an economy and government spending .

For the calculation, all tax revenues of a country are divided by the total income of the population of a country after deducting the depreciation. This gives the percentage of the tax burden in relation to the net national income . According to the Tax Foundation, this value reflects the average tax burden for the entire economy. It is converted to days from the New Year for illustrative purposes. Various institutes and think tanks have taken up the concept and calculated Tax Freedom Day for their countries .

Germany

In contrast to the concept of the Anglo-Saxon Tax Freedom Day, the Association of Taxpayers Germany has been using the national income, which is significantly lower than the net national income, as a calculation base and reference point for its taxpayer commemoration day since 2000 . The difference is not only in size, but above all in the fact that, unlike net national income, national income does not include indirect taxes. But it is precisely they that are part of the object of comparison. In the Anglo-Saxon concept, indirect taxes are included in both the numerator and the denominator of the calculation. Therefore, the Tax Freedom Day is based on a real quota , while the German Taxpayer Remembrance Day is the arithmetical result of an unreal quota. That is why it is criticized that this day of the Taxpayers' Association significantly overstates the income burden compared to Tax Freedom Day .

Great Britain

In Great Britain , Tax Freedom Day 2015 falls on June 29, according to calculations by the Adam Smith Institute . The Adam Smith Institute also uses net national income as a reference point and basis of calculation. The calculations for the last fifty years:

date
April 21, 1961 June 14, 1981 June 4, 2001
April 20, 1962 June 15, 1982 May 26, 2002
April 24, 1963 June 12, 1983 May 25, 2003
April 23, 1964 June 11, 1984 May 27, 2004
April 27, 1965 June 11, 1985 May 31, 2005
May 2, 1966 June 7, 1986 June 3, 2006
May 11, 1967 4th June 1987 June 1, 2007
17th May 1968 4th June 1988 June 7, 2008
May 22, 1969 June 2, 1989 May 27, 2009
May 26, 1970 June 1, 1990 May 30, 2010
20th May 1971 June 2, 1991 May 30, 2011
2 May 13, 197 May 28, 1992 May 29, 2012
May 12, 1973 May 21, 1993 2nd of July 2013
May 28, 1974 May 22, 1994 June 26, 2014
2nd June 1975 May 26, 1995 June 29, 2015
May 30, 1976 May 24, 1996
May 28, 1977 May 25, 1997
May 23, 1978 May 28, 1998
May 25, 1979 June 3, 1999
5th June 1980 June 3, 2000

United States

In the US , Tax Freedom Day 2015 fell on April 24th, according to the Tax Foundation. After an all-time low in 2003 and 2004 on April 16, the tax burden has risen again. Due to the federal tax system, the burden varies from state to state. The date from 1990:

date
April 20, 1990 May 3, 2000 April 9, 2010
April 19, 1991 April 30, 2001 April 12, 2011
April 19, 1992 April 20, 2002 April 13, 2012
April 20, 1993 April 16, 2003 April 18, 2013
April 21, 1994 April 16, 2004 April 21, 2014
April 23, 1995 April 23, 2005 April 24, 2015
April 24, 1996 April 26, 2006
April 26, 1997 April 24, 2007
April 27, 1998 April 16, 2008
April 28, 1999 April 8, 2009

Canada

In Canada, Tax Freedom Day 2015 ended on June 10, according to the Fraser Institute . Since 2006, the conservative think tank has been offering an individual calculator that calculates Tax Freedom Day depending on income and place of residence .

Switzerland

In Switzerland, the Tax Freedom Day was calculated by Avenir Suisse . In 2015 it was on July 2nd.

criticism

Some critical voices point out that the average taxpayer does not even exist. Because of the tax progression for high incomes, Tax Freedom Day comes on a later date than it actually is for most taxpayers, giving the impression of a very high tax burden.

A comparison between different states does not take into account the fact that the tax-financed benefits for citizens differ greatly. Only the cost side is considered, the benefit side is hidden.

It is also criticized that the concept neglects net income , shows only the tax burden and neglect capital gains.

See also

Web links

Individual evidence

  1. ↑ "Stefan Bach: The taxpayer remembrance day was already in June. DIW weekly report 27/2013" at diw.de, accessed on July 18, 2017
  2. ↑ “Michael Weisbrodt: The wrong quote, in Süddeutsche Zeitung, July 16, 2004, p. 18” at sporadum.de/die_falsche_Quote, accessed on July 18, 2017
  3. ↑ Press Release: Tax Freedom Day falls on May 31st in 2015 at adamsmith.org, accessed on May 13, 2016.
  4. ↑ “Tax Freedom” comes a day later, again at ctvnews.ca, accessed on May 13, 2016.
  5. ↑ Everyone works for the state for half a year at tagesanzeiger.ch, accessed on May 13, 2016.
  6. ↑ National income vs. Gross Domestic Product ( Memento of the original from May 13, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. at austriancenter.com, accessed May 13, 2016. @1@ 2Template: Webachiv / IABot / www.austriancenter.com