Better East Texas: Tax Freedom Day

Better East Texas: Tax Freedom Day

(KLTV/KTRE) - If you had to guess or even put a pencil to it, what would you say is the largest expense in the budgets for most Americans? Many would say a home mortgage, some would say college expense or just the expense of raising a child – and while each of those is significant, most people probably would not put taxes as one of the top two or three expense items.

But it is true. Tax Freedom Day hits sometime in April each year.  This is the day where we have worked towards since January one to pay the average tax obligation.  Americans pay roughly thirty-one percent of our income on taxes – to put it another way, you work three and a half months a year to pay for taxes.

Texans are a little less on average because we don't have a state income tax, but you get the point of how long we work each year to fund our government. We haven't had meaningful tax reform in 30 years, and while most would say the tax system generally works, our leaders must revisit it regularly to react to change in global and national financial conditions.  

This is one of the next big challenges for the Republicans in Congress and President Trump – true, real tax reform. Hopefully these groups will be able to get together more effectively than they did on healthcare and reform the tax system. Even a modest revision, creating some budgetary efficiencies in the government will make a huge difference and will cause the Tax Freedom Day to move much closer to the beginning of the year.

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