It was calculated that if a person began work on

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Unformatted text preview: ocal government. How many days each year does the average person have to work to pay all his or her taxes? It was calculated that if a person began work on January 1, 2005, he or she would have to work until April 17, 2005, How Many Days Do You Have to Work to Pay Your Taxes? Work to Pay Your Taxes? Year Year Number days spent Number of days spent working to working to pay all all federal, state, and federal, state, and local taxes Time period 1980 980 112 January April January 1 — April 21 1985 1985 108 108 January April January 1 — April 18 1995 995 115 115 January April 25 January 1 — April 25 2000 2000 124 124 January May January 1 — May 3 2004 2004 106 106 January April January 1 — April 15 2005 2005 107 January April 17 January 1 — April 17 372 Chapter 14 Taxing and Spending before earning enough to pay all taxes owed. Exhibit 14-5 shows how long the average taxpayer had to work to pay taxes in selected years. We should mention that the number of days a person has to work to pay his or her entire tax bill differs between states, because taxes are higher in some states than in other states. If you want to find out how many days a person in your state has to work to pay all his or her taxes, you can go to www.emcp.net/taxes and click on your state. For example, in Nebraska a person works from January 1, 2005, to April 13, 2005, to pay all of his or her taxes for the year. In New York, a person works until April 29. E X A M P L E : The average worker works about 35 hours a week, 49 weeks a year, or about 1,715 hours a year spent working. How many of those hours are spent working in order to earn enough money to pay one’s total tax bill (for the year)? The answer is about 490 hours, or slightly more than 28 percent of all working hours. Or you can look at it this way: If you start work at 9 a.m. each day, take an hour for lunch, and leave work at 5 p.m., you work from 9 a.m. to a few minutes before 11 a.m. each day in order to pay your taxes. After 11 a.m., what you earn stays with you. QUESTION: If the average person in the United States had to work from January 1, 2005, until April 17, 2005, to pay his or her taxes, that is 107 days. How long does the average person have to work to pay for other things, such as housing, food, and clothes? ANSWER: The average person works 65 days a year to pay for housing and housing operation. You might be interested in knowing how long the average person works to purchase other things. For example, medical care, 52 days a year; food, 31 days a year; clothing and accessories, 13 days a year; recreation, 22 days. So, you can see that taxes take a major part of most people’s income. 14 (364-389) EMC Chap 14 11/18/05 10:58 AM Page 373 Who Pays What Percentage of Federal Income Taxes? Do the wealthy in the United States pay their fair share of taxes? Polls taken in the United States indicate that most people think that the wealthy do not pay their fair share. Several issues are important in the discussion of taxes and the share pa...
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