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American Morning

Tax Day Approaches

Aired April 13, 2001 - 10:20   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: It is mid-April and you know what that means. Time to meet that annual obligation with the Internal Revenue Service. There is some relief this year. Since April 15 falls on a Sunday, the deadline to file is actually Monday the 16th at midnight.

So, how are Americans doing with tax filings this year? The IRS reports it received about 77 million returns through April 6. That is down .2 percent from last year. But, Americans are doing better with electronic filing. Thirty-four million is up more than 11 percent from last year. And now for the important part, the IRS says that 61 million people will receive a refund this year, the average check, about $1,700.

LEON HARRIS, CNN CORRESPONDENT: That just means we get to sweat one more day. Can't wait. Well, how long do Americans have to work this year to meet all their tax obligations? That's tax freedom day, and it's just been announced.

CNN's Jeanne Meserve has got that for us from Washington now -- Jeanne.

JEANNE MESERVE, CNN CORRESPONDENT: Well, Leon, tax freedom day is coming, but it's not coming till next month. That is the day average taxpayers stop working to pay taxes and start pocketing their hard earned pay, as calculated by the Washington-based Tax Foundation Group.

Announced this hour, this year's date, May 3, later than ever. In 1992, tax freedom came on April 18, about two weeks sooner. As for how the time breaks down, the Tax Foundation estimates you will work 50 days this year just to pay your individual income taxes, 29 days to pay payroll taxes and another 16 to pay so-called hidden taxes such as sales and excise taxes on goods and services. Expect to work 12 days paying your share of corporate taxes collected from companies but ultimately paid by consumers. Ten days should pay your property taxes and finally another five days will cover other business and miscellaneous taxes.

The Tax Foundation says the increase over the years is almost entirely due to a rapid growth in federal tax collections and that can be tied, it says, to a booming economy that has pushed many Americans into higher tax brackets -- Leon?

HARRIS: Thanks, Jeanne. You just cheered all of us up so much this morning.

MESERVE: I'm sure.

HARRIS: Thanks. We'll see you later. Take care.

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