Tax Freedom Day Arrives For N.C. | Eastern North Carolina Now

    Publisher's note: The author of this post is Sarah Curry, who is Director of Fiscal Policy Studies for the John Locke Foundation and contributor to the Carolina Journal, John Hood Publisher.

    RALEIGH — This week brought every American's favorite day: April 15. Most of us knew that we were required to file and pay taxes by the Wednesday deadline.

    But do you know exactly how long it took you to complete enough work to pay for those taxes? If we add up every tax you have to pay — federal, state, property, etc. — how long would it take? What is the cost of government in the terms of a calendar? The day when you have earned enough money to pay your total tax bill for the year has earned the designation Tax Freedom Day.

    According to the Tax Foundation, North Carolina taxpayers reached Tax Freedom Day today, April 16. That's two days later than last year. That means North Carolinians had to work a little longer this year to get all tax bills paid for 2015.

    Here are our neighboring states' Tax Freedom Days:

• Tennessee, April 9
• South Carolina, April 12
• Georgia, April 15
• Virginia, April 27

    The total tax burden imposed on residents of different states varies considerably. The federal tax system is progressive. That means the more you earn, the higher percentage of your income you pay.

    States also have their own tax policies, which tax people at different rates and on different sources of income. These two factors are the main reasons why Tax Freedom Day varies from state to state.

    Typically, higher-tax states celebrate Tax Freedom Day later. In 2015, Connecticut and New Jersey have the latest dates — May 13 — with New York residents reaching their day of freedom a little earlier: May 8.

    States with the lowest average tax burdens celebrate Tax Freedom Day the earliest. Louisiana residents met their tax burdens earliest, with a Tax Freedom Day of April 2, followed by Mississippi on April 4 and South Dakota on April 8.

    The national Tax Freedom Day is April 24, the 114th day of the year. This is one day later than last year, according to the Tax Foundation, which compiles and publishes the rankings on an annual basis.

    The later date is mainly due to the continuing economic recovery, which will boost federal tax revenue collected through the corporate, payroll, and individual income tax. In a strange quirk, North Carolina's Tax Freedom Day is later this year, in large part, because this state has enjoyed a stronger economic recovery than the nation as a whole. That means more tax money heading from this state to the federal government.

    According to the Tax Foundation's research:


    Since 2002, federal expenses have surpassed federal revenues, with the budget deficit exceeding $1 trillion annually from 2009 to 2012 and over $800 billion in 2013. In 2015, the deficit will continue to decline to $580 billion. If we include this annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur on May 8, 14 days later. The latest ever deficit-inclusive Tax Freedom Day occurred during World War II on May 25, 1945.

    If you want to read more about Tax Freedom Day in America for 2015, click here for the Tax Foundation's full report.