Anybody psyched about Tax Freedom Day?

Hello Mumbo Jumbo-ites!

So to unpack the concept of this special day on our calendar, and you may note my cynicism, this is the day that the nation as a whole has earned enough money to pay its total tax bill for the year.

So this year Tax Freedom Day is April 18 which is five days later than last year. This may or may not seem significant to you. Let me unpack it some more...

Americans will pay $2.76 trillion in federal taxes and $1.45 trillion in state taxes, for a total tax bill of $4.22 trillion, or 29.4 percent of income. April 18 is 29.4 percent, or 108 days, into the year. Now depending on the state tax rate, the individual date for your state may vary.

Tax Freedom Day is five days later than last year mainly to the fiscal cliff deal that raised federal taxes on individual income and payroll. Additionally, the Affordable Care Act’s investment tax and excise tax went into effect.

Anyhoo, suffice to say that the Americans who pay taxes, emphasis noted, will work on average almost four months just to pay Federal Taxes. I know this is a bit of a downer but I'm all about informing my friends and valued clients and after all...tax day is upon us.

Of course monitoring taxes carefully is important for many reasons including your estate planning, business planning and other asset protection concerns.

Stay alert friends...until next time.

SJG