Forgive me but this 47% of 49% number is nonsense, it represents those who pay no inicome tax as a result of not having enough income to pay income taxes on a given years return, it does not mean thoese people do not pay Federal taxes, in fact 82% of Americans pay payroll taxes and those same 40 plus precent of people that are talked about in the TPC study pay payroll, state, local, and federal excise taxes, as an example each time they go and put gas in the tank of their cars.
■TPC estimates show that 61 percent of those that owed no federal income tax in a given year are working households.[9] These people do pay payroll taxes as well as federal excise taxes, and, as noted, state and local taxes. Most of these working households also pay federal income tax in other years, when their incomes are higher — which can be seen by looking at the low-income working households that receive the Earned Income Tax Credit
These figures cover only the federal income tax and ignore the substantial amounts of other federal taxes — especially the payroll tax — that many of these households pay. As a result, these figures greatly overstate the share of households that do not pay federal taxes. Tax Policy Center data show that only about 17 percent of households did not pay any federal income tax or payroll tax in 2009, despite the high unemployment and temporary tax cuts that marked that year.[5] In 2007, a more typical year, the figure was 14 percent. This percentage would be even lower if it reflected other federal taxes that households pay, including excise taxes on gasoline and other items.
Misconceptions and Realities About Who Pays Taxes — Center on Budget and Policy Priorities
The point is when some people toss around this 40 plus percent number while it's true that it reflects a number for those who pay no imcome taxes in a given years return, it does not reflect taxes as a whole and as such the statement that half the nation is not doing their fair share is utter nonsense.
■TPC estimates show that 61 percent of those that owed no federal income tax in a given year are working households.[9] These people do pay payroll taxes as well as federal excise taxes, and, as noted, state and local taxes. Most of these working households also pay federal income tax in other years, when their incomes are higher — which can be seen by looking at the low-income working households that receive the Earned Income Tax Credit
These figures cover only the federal income tax and ignore the substantial amounts of other federal taxes — especially the payroll tax — that many of these households pay. As a result, these figures greatly overstate the share of households that do not pay federal taxes. Tax Policy Center data show that only about 17 percent of households did not pay any federal income tax or payroll tax in 2009, despite the high unemployment and temporary tax cuts that marked that year.[5] In 2007, a more typical year, the figure was 14 percent. This percentage would be even lower if it reflected other federal taxes that households pay, including excise taxes on gasoline and other items.
Misconceptions and Realities About Who Pays Taxes — Center on Budget and Policy Priorities
The point is when some people toss around this 40 plus percent number while it's true that it reflects a number for those who pay no imcome taxes in a given years return, it does not reflect taxes as a whole and as such the statement that half the nation is not doing their fair share is utter nonsense.