Over 76 Million Americans
Will Pay No Income Tax, 4/19/17 (Moneyish)
Many Americans won’t owe the
government a dime today. More than four in 10 American
households (44.3%) — or upwards of 76 million — didn’t pay any income tax to
the federal government last year, according
to data for 2016 from the Tax Policy Center.
This year that number is expected to be roughly the same, at 43.9%.
Most of these people aren’t paying
income taxes because they either don’t have any income that is taxable (many
fall below the poverty line), or because they get enough tax breaks and don’t
owe the government money. Common tax breaks include the child tax credit, the
earned income tax credit (EITC), and the exclusion of some or all Social
Security income, explains Roberton Williams of the Tax Policy Center.
Of course, this doesn’t mean that
this group is completely tax exempt: “Roughly 2/3 of those paying no federal
income tax work and pay federal payroll taxes that support Social Security and
Medicare; about 60% of the rest are elderly and thus retired and not working;
and most of the rest have very low incomes,” says Williams.
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Income
level Average per Person
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Lowest 20% -$655
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Second lowest 20% -$513
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Middle income $2,178
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Second richest 20% $7,220
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Richest 20% $50,445
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Though millionaires and billionaires
not paying taxes frequently make headlines — Warren
Buffett is famous for having said he has a lower tax rate than his secretary
thanks in part to how investment income is taxed — the reality is that the lion’s share of federal
income taxes are paid by those who are rich…
http://www.libertyheadlines.com/76-million-americans-will-pay-no-income-tax/?AID=723
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