Record-Setting Number of Americans Pay No Income Tax

Sunday, March 14, 2010

It used to be the only Americans not required to pay income taxes were the poor. But thanks to changes in federal law since the early 1990s, a growing number of the middle-class have had no income tax obligation—meaning they get everything back from what was withheld in their paychecks after filing with the IRS.

 
In fact, 2008 was a record-breaking year, with 51.6 million Americans not paying any income tax, according to the Tax Foundation. This number represented 36% of the total U.S. population. In 1984, a low of 18% of Americans paid no income tax, and as recently as 2000, only 25% did so
 
. A family of four can now earn up to $51,000 annually and not have any tax obligation, “raising serious doubts about the ability of the income tax system to continue funding the federal government’s ballooning expenditures,” says the foundation.
 
Federal income tax was first enacted in 1913. Complete figures for 2009 are not yet available.
-Noel Brinkerhoff
 

Comments

Acetracy 14 years ago
Funny how this article avoids Social Security tax which has tripled on the income bracket below $50,000. Plus this article doesn't point out that this income bracket (under $50,000) probably spends 100% of their income which means that on an average they are paying 10 to 15% sales tax. You add the social security tax plus the average sales tax and you see that his income group is paying at least 15% to 20% of their income in taxes. And it's funny how the article doesn't compare the income bracket of families making between $150,000 to $350,000 to the families making $3.5 million up to $35 million. If you include ALL taxes (fed and state income, state and local sales, real estate, social security, medicare,AMT etc.), the new "middle class" of America is paying up to 58% in taxes while the families making above $35 million see an average tax rate under 25%. This is where the tax code is so grossly unfair.

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