Happy Tax Freedom Day to our Polish and Danish readers!
Or so says a new study put out today by New Direction, a think tank funded by the centre-right European Conservatives and Reformists parliament group.
Tax Freedom Day isn’t some cooky holiday dreamt up to celebrate taxes or freedom; rather, it is meant to represent the day on which citizens stop working for the government (i.e. to fund their tax bill) and when they start working for themselves. So a 25 per cent tax take equates to a Tax Freedom Day of April 1st, while you need a 43 per cent rate to land on June 7th.
It’s a simplistic model, but it is invariably a big deal in the US, where it was dreamt up in the 1940s by low-tax precursors of today’s Tea Party movement.
The New Direction study, compiled by Institut Economique Molinari in Brussels, suggests that the EU-wide Tax Freedom Day is coming up this Saturday, or 44.23 per cent of the way into 2011. That’s a day later than last year, mainly because of assorted VAT tax hikes enacted to plug gaping budget deficits.
See the country-by-country breakdown after the jump: Read more