Opens in a new tab

Happy Tax Freedom Day 2009!

April 13, 2009

No, that's not just me celebrating the completion of my 2008 return three days early.

It's the Tax Foundation's annual calculation of when individuals have earned enough to cover their federal, state and local tax obligations.

According to the D.C.-based nonpartisan tax research group, this is the earliest Tax Freedom Day in 42 years. More recent comparisons show this year's red-letter day is eight days earlier than in 2008 and a full two weeks
earlier than in 2007.

So
how is Tax Freedom Day calculated?
An official government figure for
total tax collections is divided by the nation's total income. This
year, that shows that taxes will amount to 28.2 percent of our income.

And the stretch of 103 days from Jan. 1 to April 13 is 28.2 percent
of the year.

The Tax Foundation says there are two reasons for the early arrival:

  1. The recession has reduced
    tax collections even faster than it has reduced income, and

  2. The
    stimulus package includes large temporary tax cuts for 2009 and 2010.

Tax freedom day graph 2009

Nevertheless, say the group's numbers crunchers, Americans will pay more in taxes than they will spend on
food, clothing and housing combined.

State data, too: Income and tax data also are parsed out to the states, producing 50 state-specific Tax Freedom Days.

You can see if you're tax-free in your state or still waiting for the tax cell to be unlocked in this summary of Tax Freedom Day 2009.

You also might want to check out the organization's full analysis in Special Report No. 165: American Celebrates Tax Freedom Day.

In that document, Tax Foundation staff economist
Josh Barro also traces the course of America's tax burden since 1900 and
examines the composition of today's tax burden by type of tax.

Me, I'm going to hoist a cool one to celebrate my personal Tax Freedom Day, as well as cheer belatedly for Texas' tax freedom day that arrived on April 6.

Tax Carnival update: Yes, Tax Carnival #52 will be going up later today. I appreciate your understanding and patience as the last-minute crush of tax deadline 2009 takes over my professional and personal life!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
IRS sending refunds to families that claimed adoption tax credit carryforwards

October 18, 2026

Tax reform changes to the adoption tax credit meant some families didn’t get the new…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Oh, you mean we have EARNED enough to cover our tax obligation?
    Because you know if we had all PAID enough to cover it… we’d all be celebrating our mini-raises! 😉

  • My bad! Thanks for the note; I have corrected myself, Want a full-time copyediting job?

Leave your comment