Taxing toward first place

Washingtonians work second longest to reach Tax Freedom Day

When the nation reaches Tax Freedom Day on April 27, Washingtonians will still have twelve more days to work to pay off their tax burden. Tax Freedom Day in Washington won’t arrive until May 9, meaning Washingtonians work 129 days of the year in 2002 to pay their federal, state and local taxes. While Tax Freedom Day does come three days earlier this year than last thanks to the Bush tax cuts, Washington has risen from having the fifth highest tax burden in the nation to having the second highest. Only Connecticut citizens work longer.

Tax Freedom Day is calculated yearly by the nonpartisan, nonprofit Tax Foundation which has monitored federal, state and local taxes since 1937. The date is determined by dividing the per capita federal, state and local taxes by the per capita income of a state. For Washington, this means $11,899 divided by $33,436, equaling 35.6% of the average citizen’s income or 129 days of the year.

In comparison to our neighbors, Washington’s total tax burden is by far the highest:

State	Ranking	Tax Freedom Day	% of income	Days Worked
Idaho	37	April 20	30.3	110
Oregon	33	April 21	30.5	111
California	10	April 29	32.7	119
Washington	2	May 9	35.6	129

Washington’s federal tax burden also ranks highest in the West:

State	Ranking	% of income	Days Worked
Idaho	42	19.8	72
Oregon	25	21.1	77
California	11	22.4	82
Washington	2	25.1	91

Even though Washington ranks better in terms of days worked to pay state and local taxes (20th at 38 days), only neighboring Idaho scores worse, though the same amount of days are worked (17th at 38 days):

State	Ranking	% of income	Days Worked
Oregon	41	9.4	34
California	24	10.3	37
Washington	20	10.5	38
Idaho	17	10.5	38

Washington’s Tax Freedom Day over the past decade has arrived later each year with the exception of this year (due to the Bush tax cut):

1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002
Apr 26	Apr 27	Apr 29	May 1	May 2	May 4	May 7	May 9	May 13	May 12	May 9
116	117	119	121	122	124	127	129	133	132	129

The Tax Foundation estimates that Americans work longer to pay government’s bills than they work to pay for food, clothing, and housing combined:

• Federal Taxes - 80 days
• Housing - 61 days
• Other - 46 days
• Medical Care - 42 days
• State/Local Taxes - 37 days
• Food - 30 days
• Transportation - 29 days
• Recreation - 21 days
• Clothing - 15 days
• Savings - 5 days

While Washington currently ranks second in the nation for total tax burden as a percentage of income (at 35.6%), actions in Olympia this fall may guarantee the state a first place finish next year. The current budget outlook and rumblings about "revenue not keeping pace with expenditures" indicate a desire by some to increase Washington’s state and local tax burden.

To avoid the dubious award of a first place ranking next year, state officials should play by the same rules as tax paying citizens do and bring expenditures in line with revenue. Otherwise, time that should be spent working for our families will be spent working longer for government instead.

For more information please visit: www.taxfoundation.org

Contact: Jason Mercier, Budget Research Analyst, (360) 956-3482 or jmercier@effwa.org

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org