Montana Nears Tax Freedom Day [Audio]
According to the Tax Foundation, Tax Freedom Day is the “date on which Americans will have earned enough of their annual income to pay their total federal, state and local tax obligations.” In Montana the day happens on April fifteenth, two days earlier than the national average. Economist with the Tax Foundation, Will McBride spoke with KGVO News about tax freedom day and why the results aren’t as optimistic as they might appear to be.
One of the main reasons Montana has an early tax freedom day is because Montanans earn less than most other states. The average income in Montana is among the nations lowest, and because of the progressive federal tax system that means we pay less in federal taxes. But looking at income doesn’t explain everything. Tennessee has the earliest tax freedom day on March 31st, and the average income there is close to what Montanans make. Our tax freedom date is delayed in part by having higher payroll and income taxes than most of the country.