Wednesday was Cost of Government Day-the day when the average American is finally finished working to pay all the costs of taxes and government regulation.
According to Americans for Tax Reform, this year is the latest that the COGD has ever occurred, falling 26 days later than last year, and 23 days later than the previous all-time high of July 20, 1982. Two big reasons for the late date are the stimulus packages (both Bush’s and Obama’s) and bailouts for the Big Three automakers.
It is interesting to note that Tax Freedom Day this year was April 13, eight days earlier than last year. Why was it earlier? Well, one reason was that the recession has cut government income more than it has our income. But another reason was that the stimulus packages contained tax cuts! So what the government gave us earlier this year through the tax cuts they more than took away through the larger spending in the stimulus package.
Finally, while we worked 103 days on average this year to pay our taxes, Americans actually worked more-104 days-to pay the costs that government regulation imposes on the economy. This may be the first time that this has happened.
It may not be the last if pending legislation to regulate health care and carbon emissions passes Congress this year. But there is still hope that these bills will get bogged down amidst the ongoing citizen protests.
– Bill Peacock