Nevada losing ground compared to rest of nation in reaching Tax Freedom Day

 

Tax Foundation map showing Tax Freedom Day in each state.

As Andy Koenig, senior policy advisor at Freedom Partners Chamber of Commerce, recounts today on the editorial page of the morning newspaper, your IRS taxes may be due today but you won’t be free from paying taxes until April 21 in Nevada.

That’s because, as the Tax Foundation calculates, until then, on average, every dime you earn goes to pay federal, state and local taxes.

“In calculating Tax Freedom Day for each state, we look at taxes borne by residents of that state, whether paid to the federal government, their own state or local governments, or governments of other states,” Tax Foundation’s methodology statement reads. “Where possible, we allocate tax burdens to each taxpayer’s state of residence.”

Nationally, tax Freedom Day falls on April 24, a full 15 days later than in 2010.

Nevada’s Tax Freedom Day is a full 19 days later than in 2010 — must have been something our elected officials did. And that doesn’t yet take into account the $1.4 billion Nevada lawmakers jacked up taxes in the 2015 Legislature that are just now taking effect.

Koenig relates the federal bite being taken out of our income:

Tax Freedom Day keeps getting pushed back because the government keeps taking more of our money. This year, Washington, D.C., is expected to rake in a record-breaking $3.36 trillion in tax revenue, $115 billion more than it did last year.

That still won’t be enough to satisfy D.C.’s spending addiction. Washington will once again spend more than it brings in this fiscal year, adding $534 billion to the already massive federal debt. Over the past two decades, both Republicans and Democrats have made countless promises while leaving you and me with the bill. The result has been out-of-control federal spending, which has fueled an unprecedented rise in the national debt from just over $5 trillion in 1996 to nearly $20 trillion today.

The wasteful spending is getting worse, too. Last month, the federal government’s fiscal watchdog — the Congressional Budget Office — estimated that D.C. deficits will grow every year for the foreseeable future. The annual shortfall will surpass $1 trillion within six years.

Tax Foundation calculates we pay more in the taxes than for food, housing and clothing combined.

If you don’t pay your taxes, you will be jailed and provided food, housing and clothing.

 

 

Thankful you live in low-tax Nevada? Not so fast, chief

Tell me again why Nevada needs to increase state spending by $1.3 billion and increase taxes to pay for it.

We’re just not taxed enough, our Republican Gov. Brian Sandoval insists, along with a majority of the state Senate, including all but four Republicans.

The Tax Foundation has come out with its 2015 Tax Freedom Day stats, and it turns out Nevada’s tax burden in federal, state and local taxes as a percent of total income ranks 26th in the nation — right in the middle. That means it takes Nevadans until April 20 this year — 110 days into the year — to start earning money we can keep, instead of paying taxes. Nationally, Tax Freedom Day is April 24.

“Americans will pay $3.3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.8 trillion, or 31 percent of the nation’s income,” the Tax Foundation calculates, noting that the tax burden in 1900 was 5.9 percent of income.

Americans will spend more on taxes in this year than on food, clothing, and housing combined. If federal borrowing were included it would take another 14 days to cover the government tab.