LOS ANGELES (CBSLA.com) — Taxpayers in Southern California and throughout the state, rejoice: the income you’ve earned since Jan. 1 is enough to pay your federal, state and local taxes for 2014.
KNX 1070’s Ed Mertz reports Tax Freedom Day has arrived a full six days later than last year.
Tax Freedom Day, calculated annually by the Tax Foundation, is the day Americans have technically earned enough money to pay their annual tax obligations at federal, state and local levels.
While the national Tax Freedom Day fell back on April 21, this year’s date for California was April 30 — the fourth latest in the nation. After California, only three more states remain: New York (May 4), Connecticut (May 9), and New Jersey (May 9).
Taxpayers in California have to work longer than residents in 46 other states to celebrate their “freedom,” according to economist Lyman Stone.
“States with high incomes or a lot of business income pay more federal taxes,” said Stone. “So California, New Jersey, New York, Connecticut all share those attributes.”
Residents in Louisiana have the earliest Tax Freedom Day on March 30, but the total tax burden borne by residents of different states varies considerably. This is primarily due to differing state tax policies and because of the progressivity of the federal tax system, according to Tax Foundation spokesperson Richard Borean.
The tax bill for all taxpaying Americans is estimated to total $4.5 trillion in 2014, according to Tax Foundation data.