Today is tax day, but Tax Freedom Day is not until Sunday. What is Tax Freedom Day? Prior to that day, the average American works to pay for government. For the remainder of the year, the American worker gets to keep what he earns. The Internal Revenue Service reports that the richest one percent pays about a third of all income taxes it receives. The richest five percent pays more than half. The poorest half pays about four percent. A quarter century ago, the highest marginal rate stood at 70 percent. Forty-five years ago, it was 91 percent. Sixty years ago, top earners paid 94 percent. Thirty-five percent is the highest rate you could pay today, which is lower than under Bill Clinton but higher than under George H.W. Bush.

Dan,

While there has been a significant cut in the Federal Income Tax rate, many of us are feeling a greater pinch on the state and local level. Of course, this is the way I prefer it-let the states handle more of their own business. I think the tax taht the majority of my neighbors are complaining about now are property taxes.

BUT WAIT! Why not have a U.S. lotto to balance the budget (note sarcasm). It seems like the states that thought gaming was the revenue panacea have found out otherwise.

Be well,

Sponge

Hey Dan: No "Taxman" reference from The Beatles' Revolver? Or is that too obvious considering your recent posts?

John: I thought about it, but, as you recognize: too obvious.

There's the Federal bite. Then, there's the State bite (taxes, fees, etc.). Now comes the ever increasing local/municipal taxes and fees. Oh, and let's not forget that everybody you buy anything from has already contributed their share as well.

I rememeber the days when fixed cost items might go up $5 or $10 a year. Now they go up $50 to $100.

Funny though, my income has risen commensurate to costs.

Getting tougher out here people. Especially in Taxachusetts.