Today is Tax Freedom Day in Florida, meaning earned income has covered what constituents owe in taxes and earnings are now channeled toward themselves, their families and their business expenses for the remainder of 2016.
Coinciding with federal and state tax deadlines for the 2015 calendar year, the designation signifies that all the income earned thus far in 2016 by Florida workers has been funneled directly into tax obligations —approximately one-third of what each worker makes in a year — with the rest of their salaries theoretically assigned to cover personal expenses and their own business costs for the remaining weeks of the year.
Tax Freedom Day varies from one state to the next, depending on earned income and tax obligations. Its identification is meaningful because it graphically represents how long it takes Americans to work each year before they have made enough money to set aside for what they will owe in taxes.
Year-to-date, the Tax Foundation says, Florida is the 29th state in the nation to meet its obligations and merit the label. Florida Chamber of Commerce responded to the news by asking what impact it would have if the state were to meet that obligation sooner and scoring higher.
“Would that allow your business to reinvest in growth and put more money back in your pocket?” the Chamber asked.
The Tax Foundation is an independent non-profit tax policy research organization. Since 1937, its research and analysis have facilitated informed tax policy at the federal, state, and local levels.