Tax Day: How Much Do Americans Really Pay and Why It Must Change

Originally posted on X. 

The actual cost of taxation is more than just the check we write to the IRS. It’s the vacations we skip, the savings we delay, the upgrades to our homes we postpone, and the dreams we quietly shelve. Every April, we’re reminded of how much our government takes and how little it gives in return.

For a family of four, the numbers are staggering. By the time they pay federal income taxes, payroll taxes, state income taxes, property taxes, sales taxes, and countless other hidden fees, they’ve often surrendered over 30% of their annual income. That’s equivalent to $30,000 for a household earning $100,000. It’s enough to buy a car, pay for a year of college, or cover mortgage payments. Instead, it disappears into the coffers of governments that continue to overspend and overpromise.

April 15—Tax Day—is more than a filing deadline. It’s a moment to reflect on how our prosperity is siphoned away to fund a bloated, inefficient system. According to past estimates from the Tax Foundation, Americans work until mid-April each year to pay off their total tax burden—before keeping a single dollar for themselves.

Despite this massive annual outlay, our national debt now exceeds $36 trillion, and programs like Social Security and Medicare teeter on the edge of insolvency. Why? Taxation isn’t the root problem—spending is. While some politicians argue for higher taxes to “fix” these programs, history shows us that throwing more money into a broken system only prolongs the dysfunction.

The 2017 Tax Cuts and Jobs Act (TCJA) offered a rare moment of relief. It lowered tax rates, doubled the standard deduction, and expanded the child tax credit—benefiting working families. In its wake, GDP grew 3%, unemployment hit 50-year lows, and wages climbed. But those tax cuts are set to expire at the end of 2025. If that happens, middle-income families will see their taxes rise while inflation erodes their purchasing power. The lowest bracket will increase from 10% to 12%, the 22% bracket will jump to 25%, and the top rate will revert to 39.6%.

Unless Congress acts, that family of four could owe thousands more to the IRS in just over a year. For small businesses, this would mean less money to hire, invest, or expand. At a time when we need certainty, Washington is piling on risk by raising taxes on Americans through Trump's tariffs and possibly letting TCJA expire.

And the burden isn’t limited to the federal level. States and localities have become addicted to taxes as well. In Texas, local property taxes have grown 143% faster than taxpayers’ ability to pay since 1998, outpacing population growth and inflation. Many families feel like they’re “renting” their homes from the government—even after paying off their mortgage—for local governments to overspend.

What’s the solution? First, we must recognize that prosperity starts with people, not politicians. That means limiting government spending to the maximum rate of population growth plus inflation. It means eliminating state and local income taxes that punish work and drive jobs away. It means shifting from coercive property taxes to a broad-based, transparent final sales and use tax.

We must also make the TCJA permanent, cut unnecessary federal agencies, and end corporate welfare. Innovation thrives when businesses and individuals compete on a level playing field—without special privileges or punitive taxes—and growth accelerates.

This isn’t just about economics—it’s about fairness. Every dollar the government takes is not used to build a future, grow a family business, or support a local charity. It’s time we had a tax system that respected the people who funded it.

Milton Friedman once warned, “The problem is not that people are taxed too little, the problem is that government spends too much.” Until we confront that truth, Tax Day will continue to be a monument to missed opportunity.
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So, on April 15, don’t just file your return. Ask yourself: What would my family do with the money we’re losing to inefficient, bloated governments? Then demand policies that shrink that burden, restore your freedom, and put your prosperity first.