Today is Tax Freedom Day, announced the Adam Smith Center. It means that from today onwards we earn only for ourselves.

Tax Freedom Day is a symbolic holiday for taxpayers. Since 1994, its date has been announced by the Adam Smith Center. It takes into account the relation of all public expenditures (state budget, local governments, government special-purpose funds, etc.) to the Gross Domestic Product. Public spending is paid for by citizens paying taxes to the state. Tax Freedom Day falls on the day when the statistical citizen has already earned enough to pay all his/her taxes since the beginning of the year and the rest of what he/she earns by the end of the year he/she will only have to pay for his/her needs. In 2022 Tax Freedom Day fell on June 13, the 164th day of the year. That's 9 days shorter than in 2021. 

The Adam Smith Center explains that this year's significant change in the date of Tax Freedom Day in favor of citizens is due solely to nominal GDP growth concerning public sector spending. In 2022, most of the government spending related to the so-called shields, among others, which made the 2021 Tax Freedom Day fall on June 22, is extinguished. In 2022, numerous government expenditures are virtually frozen, including, among others, wages and salaries in the public sector relative to GDP growth, the nominal increase of which is partly due to inflation.

(PARKIET)