Where does your money go? Tax reform is in the news. Tax Freedom Day has come and gone. You know the date until which you have to work to make a profit after all taxes are paid. This year that day was April 24th, one day earlier than last year. Now the money you earn is mostly yours, not the government’s. Americans pay $3.3 trillion in federal taxes each year and $1.6 trillion in state and local taxes, or just shy of $5 trillion dollars each year.