Sunday, May 19, 2013

Latest news, weather, high school sports for Michigan’s Upper Peninsula

More than three months wages go to taxes this year
Posted: 04.12.2011 at 7:09 PM
11

Tuesday, the 102nd day of the year marks "Tax Freedom Day"

Photo

MARQUETTE -- If you're rushing to finish filing your 2010 taxes - here's a thought.

Tuesday's a milestone for your 2011 taxes. It's 'Tax Freedom Day,' meaning the total income you've made since January 1 this year should just be enough to pay off your local, state and federal taxes for the rest of the year.

Paul Luoma works 35 to 45 hours a week at The Doghouse in Marquette. It's the 102nd day of the year Tuesday, and the income he's made since January 1, starts at zero. Everything he's made so far will go to taxes. But he's been well aware of the meaning of 'Tax Freedom Day' for a while, and he says it doesn't bother him.

"If feel good about it," says Luoma. "I don't mind at all, working, giving a quarter of my money to other people. If they need it more than me, than I want them to have it."

And he's not alone.

"I guess it doesn't sound that bad," says 20-year fulltime Sports Rack salesperson Mary Connor. "We just deal with it, and do our best to help society."

But where those taxes are going raises some concern.

"The problem I have is the way the money is spent," says Luoma. "What does one F-15 cost? Millions and billions of dollars. My friend can't go to school, because he can't get the appropriate student loan."

Tax Freedom Day falls a few days later nationally than last year, but that isn't just a reflection of increased taxation.

"Change, that depends on income levels," says Jim Heikkinen, president of UP Tax and Accounting. "There's different variables involved. Rising income levels means the tax burden is higher, and so it would take a little longer to cover the tax debt."

But what about the federal deficit? Where it does it come into play with these numbers? 

It doesn't, it ignores the current years federal deficit. Experts say if it was calculated, Tax Freedom Day would be an entirely different story.

"Tax Freedom Day wouldn't come into play until probably the last week of May," says Heikkinen.

But keeping things in perspective, Freedom Tax Day could be even later. Canada's is projected to fall in June.

Popular Stories
Thumbnail
Several days of rain on the way
Dustin Bonk  |  Today at 1:58 PM  |  4 comments
Thumbnail
Walking for Kayla
Dustin Bonk  |  Yesterday at 10:23 PM  |  1 comment
Thumbnail
What would you do with $600 million?
Gabrielle Mays  |  Yesterday at 9:01 PM  |  10 comments
Follow Upper Michigan's Source
Get news and weather notifications on your phone by downloading the iPhone or Android app below
Sign up to get alerts and updates for breaking news, severe weather, and deals:
submit
ADVERTISEMENT
Check This Out!
Home & Garden
Check out the Home & Garden section of Best Bets.
Best Bets
See what the experts have to say.
Live Chats
Check the live chat replays and see a new one Wed.
Automotive
Check out the Automotive section of Best Bets.
ADVERTISEMENT