Yesterday was Tax Freedom Day! For the first 149 days of 2011 you were working for the government, with every penny earned adding to Treasury coffers, according to the Adam Smith Institute. From tax freedom day, your money is your own for the rest of the year.
Tax freedom day is calculated by adding all the direct and indirect taxes collected as a proportion of the total Net National income. This works out to be 40.8% or 149 days of the 365 day year.
Tax freedom day is three days later than last year, reflecting higher taxes, mainly due to the rise in VAT.
All the economic indicators are that the public finances are not going to improve significantly quickly. Recovery is likely to be a long haul and I donít expect tax freedom day to happen any sooner next year