April 15 - Tax Day

Today is April 15 - Tax Day in the United States. If you haven't yet filed your taxes, the clock is ticking.

The IRS Website is filled with information on how to pay your taxes, forms to use, identity theft information. Even better and more informative, the IRS gives us a page of nothing but quotes about taxes, as perhaps an attempt to put a smiley face on a the greyest of grey, drab government agencies - as if calling it the "Internal Revenue SERVICE" somehow makes it something other than the official money grabber of the government.

The "Service" includes a disclaimer at the top of their quotes page: "When it comes to taxes, everyone has an opinion. These quotes reflect the opinions of their authors; their inclusion here is not an official IRS endorsement of the sentiments expressed."

Surprisingly, though, while the IRS rejects the notion they endorse the expressed sentiments, there doesn't seem to be any truly anti-tax sentiments expressed, unless you consider this Gerald Barzan quote anti-tax: "Taxation with representation ain't so hot either."

Funny, they don't consider this Will Rogers' quote worthy of their page: "If you make any money, the government shoves you in the creek once a year with it in your pockets, and all that don't get wet you can keep."

Or this William Simon quote: "The nation should have a tax system that looks like someone designed it on purpose."

Why Move the Date

When the 16^th Amendment was passed on February 3, 1913, March 1 was chosen as the tax reporting day. In 1918, that day was moved to March 15 where it stayed until 1955, and hence the reason Ogden Nash discusses March as "that month of wind and taxes" when he wrote "Thar She Blows" in 1949. Why move the date?

When it was moved to April 15, the rationale was to give the IRS more time to handle the work. However, when the government collects payroll taxes - whether or not those taxes are equivalent to the individual tax payer's tax burden - that which is collected over and above the actual tax liability is essentially a 0% interest loan to the government. The longer that the government can avoid repaying that additional money, is money the government has at its disposal that it doesn't have to pay for.

April 23 - Tax Freedom Day

This year, federal income tax filers with income of more than $3000 will receive an economic stimulus check from the government. Because of this "largess" from a government returning money to its citizenry, "Tax Freedom Day," the date on which Americans have earned the equivalent of their yearly tax burden. According to The Tax Foundation, in 2008, "Tax Freedom Day" is April 23.

In 2008, taxes will amount to 30.8% of our income, April 23 is 30.8% of the way through the year. This is 3 days earlier than in 2007, largely because of the anticipated "economic stimulus" checks the government will be mailing later on in the year. On a state-by-state basis, the date changes. The latest is May 8 in Connecticut; the earliest is March 29 in Alaska.