EKIP– Expert Club for Economics and Politics A Different Opinion
Tax Freedom Day is the day on the calendar when citizens will pay the planned revenues into the budget and begin working for their needs.
In 2019, this day in our country falls on May 18, 138 days after the New Year. This means that if everything produced so far during the year is transferred 100% to the state, May 19 will be the first day when citizens will not pay taxes and will earn only for themselves.
The calculation of the exact date includes direct taxes, i.e. income taxes, social security contributions, pension and health taxes, indirect taxes such as VAT, excise duties, customs duties - for the "average" Bulgarian. The bill distributes the tax burden on absolutely all Bulgarian citizens (including children, pensioners, etc.), but it is the working people who bear the greatest burden on the treasury.
This calculation was first made by Florida businessman Dallas Hostetler in 1948, who continued to publish it for the next two decades. In 1971, Hostetler “passed the buck” to the Tax Foundation, which continues to calculate Tax Freedom Day annually and communicate it to American taxpayers to this day.
Since 2007, the calculation in Bulgaria has been made by the Institute for Market Economics (IME). In recent years, there has been a trend of the tax freedom date moving further and further forward in the calendar, which means that the tax burden is increasing. The reason for this is the increase in pension contributions and the increase in the maximum insurance threshold. More information about the methodology and changes over the years can be found HERE.
Source: IME
There is no fixed date for Tax Freedom Day. It occurs at different times in different countries and depends on the economic situation and tax legislation, as well as the methodology used to calculate it.
In our country, in 2018, Tax Freedom Day fell on May 13 - five days earlier than this year. According to the Adam Smith Institute, in 2018, in the UK, freedom came on May 29, three days later than the previous year. This is the latest date since the calculation began in 1995. In France (Institut Economique Molinari), the holiday was celebrated the latest in the entire European Union - on July 27.
The purpose of celebrating this peculiar "holiday" is to provide taxpayers with an indication of how long they actually work for the state and to compare it with what they actually receive for the amount of taxes they pay. Is it worth it? In 2017, BLO and IME celebrated the holiday by treating over 400 people to beer. This year, the event will be repeated on May 18!
Come this Saturday, after 4:00 PM until dark, to the corner of Vitoshka Street and Han Asparuh Street, where a unique celebration of the holiday will take place. For more information HERE
