Today the Tax Foundation released their 2011 edition of Tax Freedom Day. Unfortunately, Mainers will have to wait another 5 days to celebrate Tax Freedom Day which falls on April 5. Nationally, Tax Freedom Day falls on April 12. Maine’s earlier Tax Freedom Day is attributable to lower federal taxes, on average, than the rest of the country because Maine is a lower income state.
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.