Wednesday, July 27, 2011

51% of Americans Pay No Federal Income Taxes

There are Americans -- millions of them -- who really do pay practically zero overall taxes. About fifteen million American households, or 10 percent of all taxpayers, receive more cash from the IRS than they contribute in federal income taxes and payroll taxes. That's thanks to "refundable credits," tax credits that can bring your tax bill into negative territory. To some, these 15 million are low-income Americans benefiting from smart and targeted welfare run through the tax code. To others, they are unacceptable free riders, citizens with a vote but no stake in federal government.
http://www.theatlantic.com/business/archive/2011/05/51-of-americans-pay-no-federal-income-taxes/238329/

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