Today the Tax Foundation released their 2011 edition of Tax Freedom Day. Unfortunately, New Hampshire’s taxpayers will have to wait another 10 days to celebrate Tax Freedom Day which falls on April 9. Nationally, Tax Freedom Day falls on April 12. New Hampshire’s earlier Tax Freedom Day, relative to the national average, is attributable to our very low state and local tax burden.
However, the study goes on to note the role that the enormous federal deficit plays in Tax Freedom Day. The measure does not include include the deficit because that money comes from borrowing rather than taxation. Yet, had taxes been raised to cover the deficit then, nationally, Tax Freedom Day would have arrived 41 days later on May 23.