Tax Freedom Day was even farther away this year.
Grand Rapids, MI -- (SBWIRE) -- 04/26/2013 -- It is difficult to stay abreast of everything that is happening financially in the United States today. Dennis Tubbergen, a financial advisor, author, radio show host and CEO of PLP Advisors, LLC can be counted on to give a hand when it comes to understanding the latest events in U.S. and world economics.
Whether people enjoy his weekly newsletter at http://www.moving-markets.com or his blog at http://www.dennistubbergen.com, Tubbergen is dedicated to sharing his viewpoints and opinions. On April 16, 2013 his blog was titled Appropriate for Tax Season: You'll be Working Longer for the Government.
"The trend in recent years has American taxpayers working longer each year to pay their taxes," began Tubbergen. "This year is no exception."
Below he quotes from an April 2, 2013 article on CNS News.
April 18 will be Tax Freedom Day, the day when Americans have worked enough to pay all of their federal and state taxes for 2013 - a round total of $4.22 trillion, according to an analysis done by the Tax Foundation.
That's five days later than in 2012.
Americans will pay more than $2.76 trillion in federal taxes and $1.45 trillion in state taxes for 2013 - for a total of $4.22 trillion in taxes, or 29.4 percent of income. (Figures are rounded.)
April 18 is the 108th day of the year, or 29.4 percent of the calendar year.
According to the foundation, Americans will spend more on taxes than they will on food, housing, and clothing combined in 2013.
The Tax Foundation has calculated it will take Americans
- 32 days to pay for federal individual income taxes;
- 24 days to pay for federal social insurance taxes;
- 12 days to pay for state and local sales taxes and excise taxes, as well as property taxes;
- 8 days to pay for state and local individual income taxes, as well as federal corporate income tax;
- 3 days to pay for other federal taxes and another three days to pay for other state and local taxes;
- 2 days to pay for federal excise taxes;
- 1 day to pay for state and local corporate income taxes,
- And three hours to pay for state and local social insurance taxes.
Last year's Tax Freedom Day - April 13 - was five days earlier, with the difference attributed to increased federal taxes on individual income and payroll as part of the fiscal cliff deal. In addition, investment and excise taxes under Obamacare (the Affordable Care Act) have come into effect, as well.
Since 2002, federal expenditures have exceeded income, and the federal budget deficit has exceeded $1 trillion annually since 2009, though this year it is expected to come down to $833 billion. If that deficit spending was included in the calculations - then nationawide tax Freedom Day would be May 9.
"Seems to me this ought to put to rest any argument about taxes being too low," states Tubbergen. "If deficit spending is included in the Tax Freedom Day calculation, we all work to pay our taxes until May 9 on average. But, because the federal government spends more than it collects in tax revenues, borrowing the difference, Tax Freedom Day is April 18."
Tubbergen goes on to say it might seem surprising that one only has to work an extra three weeks or so to fully fund collective governments in full.
"Almost sounds relatively harmless, doesn't it?" questions Tubbergen. "Trouble is, if we don't work the extra three weeks this year in order to provide the government the revenue needed to balance the budget, we'll have to work them next year. If we don't work the extra weeks next year, we have to double them up the following year in order to catch up provided expenditures don't increase."
The longer the government goes without a balanced budget, the deeper the hole in which we find ourselves becomes.
"That brings me to where we are today at the federal level," explains Tubbergen. "The official national debt is approaching $17 trillion. If it takes about three extra weeks of working for the government to cover what is projected to be an $800 billion deficit this year (down from prior years), we would all have to work an additional 62 or 63 weeks for the government in order to pay down the debt and cover the official debt. However, we still would not have addressed the liabilities that exist in the Social Security and Medicare programs."
Tubbergen's bottom line here?
"When you hear politicians talk about making a segment of the population pay more in taxes, remember this simple fact," concludes Tubbergen. "We could all work all year for the government, paying 100 percent of our income in taxes and still be in a financial hole."
To read the blog in its entirety go to http://www.dennistubbergen.com and select his April 16, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to www.moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.