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Thursday marks Tax Freedom Day

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Residents in the Land of Enchantment celebrate earlier than April 9 national average

By Special to the Monitor

WASHINGTON, DC — Tax Freedom Day — the date on which Americans will have worked long enough to have earned enough money to pay this year’s tax obligations at the federal, state and local levels — will fall on Thursday for residents of New Mexico.

That’s 91 days into 2010. The date for all Americans is April 9, the 99th day of the year.

This year’s national Tax Freedom Day is one day later than in 2009, but more than two weeks earlier than in 2007.

The shift toward a lower tax burden since 2007 has been driven by three factors:

• The recession has reduced tax collections even faster than it has reduced income;

• President Obama and the Congress have enacted large but temporary income tax cuts for 2009 and 2010, just as President Bush did in 2008; and

• Two significant taxes were repealed for 2010 as part of previous legislation, the estate tax and the so-called PEP and Pease provisions of the income tax.

Despite all these tax reductions, Americans will pay more taxes in 2010 than they will spend on food, clothing and shelter combined.


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