43% of Americans Pay No Federal Income Tax

Whatever happened to Obama’s admonition that everyone needs to “have skin in the game?”  Huh

The percentage of Americans who pay no federal income tax is falling, thanks to an improving economy and the expiration of temporary Great Recession-era tax cuts. In 2009, the Tax Policy Center estimated that 47 percent of households paid no federal income tax. This year, just 43 percent will avoid the tax.

TPC’s 2009 estimate went viral during the following tax season and then played a supporting role in last year’s presidential election. Many commentators misinterpreted the estimate as saying that nearly half of all households paid no tax at all when, in fact, nearly everyone pays something. Even if they don’t pay federal income tax, Americans almost all pay Social Security and Medicare payroll taxes, state and local sales taxes, excise taxes, or some other levy.

This new TPC whiteboard video explains what’s really going on and why the number of people paying no federal income tax is falling.

The new TPC estimates project that the fraction of households with no federal income tax liability will continue to fall over the next decade. By 2024, only one-third will pay no income tax.

Of the 43 percent of households that will owe no federal income tax this year, nearly half will be off the rolls because their incomes are too low. The rest won’t pay because preferences wipe out the taxes they would otherwise owe. Many of those preferences, such as the Earned Income Tax Credit and the Child Tax Credit, are social policy run through the tax code. If those provisions were considered spending rather than tax cuts, many more people would be counted among income tax payers. (Indeed, for budgetary purposes, much of the value of those tax credits is considered an outlay.)

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3 Responses to 43% of Americans Pay No Federal Income Tax

  1. noblindersome says:

    why don’t you give it up, %^#$@ I have not visited this toxic dump of a blog for over a month , mainly because I have a purpose in life and a job and family committments that prove to God and society , that I was right to expose you for the phony you are.
    You have had ZERO comments since I last blasted you for your ignorance . ZERO since Aug 7!
    Nobody gives a damn what you say anymore !
    Yet you blithely continue to press on. It is not quixotic to do as you do , it is blatantly stupid, which is kinda confirmation of your lack of societal acceptence.
    a couple years ago I described you as someone who thinks drawing fake mustaches and beards and dorky glasses on someone’s picture is ‘clever commentary’. I nailed it then and after several years you have seldom risen beyond that!
    I also noticed you have ‘cleverly (yeah right!) updated your blog to omitt the archive that contains your record of stupidity and depravity. Out of sight out of mind right!
    I really don’t understand how you are going to cultivate a new following with pictures and slurs about Obama relaxing in the Oval office with the dismissive ‘ he was born in a barn not taught well by his commie mother ‘! yeah THAT will just get you back on track to make America a better more civil place! ( say Leith ND might have a new home for you!)
    by the way , Big Iron is back in Fargo . remember last year I invited you to meet me and my farmer friends there to ‘discuss ‘ all your ‘ideas’ about what a freeloading bum I and all farmers are! You didn’t show! Shocker !!!!
    I will be back again this week and the invite is there , Cmon lets meet ! Lets discuss this new farm bill!
    I will bring copies of all your past articles about how much us farmers disgust you

    • Avatar of Kevin Kevin says:

      Hey, Ron, did you see this today?

      Published September 14, 2013, 11:35 PM
      Letter: Robin Hood in reverse on the farm
      Nothing more sharply illustrates the immortal nature of government than the federal farm program, which began during the New Deal as a “temporary” relief measure for the rural poor and which now, in its 80th year, flourishes as a permanent entitlement for the rich.
      By: John P. Calvert, Fargo, INFORUM

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