On May 6 Americans' incomes caught up with their tax payments to federal, state and local governments. The Tax Foundation named it Tax Freedom Day and proclaimed wages earned over the next six months as the laborers' own.
Another government reform group -- the Americans for Tax Reform Foundation -- took the depressing statistics a step further: The group called today Cost of Government Day.
July 9 is when Americans' incomes stopped going for, not only all taxes, but also government regulations and deficit spending.
The foundation believes specific government practices delay the date Americans begin working to earn money for their personal use.
Jim Lucier, research director for the Americans for Tax Reform Foundation, said a big problem is that most people don't realize how much government costs and how much money reform could save.
He said the time it takes to fill out tax forms, if time is money, means Americans spend billions of dollars yearly completing their tax returns. Lucier and his group would like to see a flat tax, a simple percentage of a person's income, no schedules, no brackets.
In addition, they want fewer government regulations, which cost companies money for compliance and hold up the approval process of money-making medications and devices.
"We need an annual regulation budget," Lucier said. "There would be a set cost of regulations for a year, and if you wanted a new regulation, you would have to get rid of an old one. We could deregulate areas that don't need it anymore."
Deficit spending costs mean another burden on taxpayers, so the Americans for Tax Reform Foundation lobbies for a balanced budget amendment, a streamlined federal budget process and a decentralization of government functions.
Some Missouri legislators also believe there is too much bureaucracy in the United States. Sen. Kit Bond testified before the Senate Government Affairs Committee in February, saying Americans want government brought under control.
He then outlined the top 10 worst regulations, which include the Environmental Protection Agency Superfund, OSHA and the Truth in Lending Act.
Rep. Bill Emerson said Cost of Government Day sends a clear, powerful message that Americans are overtaxed and overregulated, adding that Congress already has taken some steps, including passage of the congressional budget, so that the infamous day will come a bit earlier in years to come.
"This year's cost breakdown works out that 52 cents of every dollar earned by the average worker is spent on government bureaucracy, taxes and regulation," Emerson said. "This must change."
In addition to sponsoring Cost of Government Day, the Americans for Tax Reform Foundation encourages legislators to sign the Taxpayer Protection Pledge, promising they won't vote to raise income taxes.
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