The news media gives little attention to Tax Freedom Day, the day the average American has earned enough money to pay this year's tax obligations at the federal, state and local levels. It reports even less on the Cost of Government Day.
Cost of Government Day is the date of the calendar year on which the average American worker has earned enough gross income to pay off his or her share of spending and regulatory burdens imposed by all levels of government, federal, state and local. According to the Americans for Tax Reform, Cost of Government Day is far worse than Tax Freedom Day.
This year, the national Cost of Government Day fell on July 16. Wisconsin’s Cost of Government Day, the 37th latest in the country, is today. July 17.
Americans for Tax Reform in its 2008 report on Cost of Government Day (COGD) writes:
“Working people must toil on average 197 days out of the year just to meet all costs imposed by government. In other words, the cost of government consumes 53.9 percent of national income.
Cost of Government Day falls four days later in 2008 than last year’s revised date of July 12. In 2008, the average American will have to work an additional 17 days out of the year to pay off his or her cost of government compared to 2000, when the COGD was June 29.
In fact, since 1977, COGD has fallen later than July 16 in only four of those 32 years -in 1982 and 1983, and in 1992 and 1993. The driving factor for this development is the fact that all components of the cost of government – federal spending, state and local spending, and regulation – are now increasing faster than national income.
This increase in the cost of government stands in sharp contrast to at least two periods in the past thirty years: COGD fell sharply from a high of July 20 in 1992 to June 29 in 1999 and 2000. In addition, COGD declined from a record high of July 23 in 1982 to July 3 in 1989. Both of these declines resulted from a combination of restraining the growth of federal spending while the economy was booming and rapidly increasing national income.”
The key is taxing and spending. The burden on taxpayers is reduced when restraints are placed on spending. In Wisconsin, taxing and spending levels remain too high, meaning Wisconsin taxpayers have to work over half a year just to earn enough income to pay off their commitments to all levels of government.
You can read more about the Cost of Government and Cost of Government Day here.
I have signed a pledge issued by Americans for Tax Reform that I oppose tax increases.
Cost of Government Day is finally here. Its arrival is little reason to celebrate.
