50% of Americans do not pay income tax?

[Google]

50% of Americans do not pay income tax.

I have been hearing this mantra from the media and politicians for several weeks now. I have not seen any statistical or logical explanation of this statement.

I am hoping that, in this post, I can wrap my head around this monumental claim. How is it that Congress has allowed a set of rules to evolve that facilitates half of the country not paying income tax?

What I suspect is that the real situation involves a few Orwellian idioms which imply that many of these people are not paying income tax when, in fact, they are.

Let me first explain the Orwellian idioms:

Tax credit: A person with children gets a “tax credit”. It is applied to the amount owed the IRS for income tax. For each child $1000 “credit” is added. If that person has three children and owes $1,000 his income tax owed becomes -$2,000 ……..(1000x3) – 1000 = 2000…….. If this were actually a “tax credit” he would owe nothing and he would not receive any refund as he had “credit” for the amount he owed. The IRS ends up paying the man $2000 dollars. This makes the “credit” not a credit at all but an endowment.

Paid income tax: If a person did not make a payment to the IRS in any given year, he did not “pay income tax”
Did he pay income tax that year?

My assumption is that in the statement of “50% of Americans do not pay income tax.” He is included in not paying income tax as he was not required to write a check to the IRS.

In fact he did “pay his income tax” for that year. The IRS elected to pay him (not give credit for) $1000/child and he had three children.

He paid $1000 and received $2000 balance.

Please let me know if I am correct in assuming that these people are included in the 50% tally.

If not, how is it that the Federal Government has gotten us to a point that only half of our citizens pay income tax.

I worked as a courier and was paid on commission and for two years I paid ZERO in federal income tax or FICA--nothing was taken out of my pay.

I finally filed for those two years, I averaged $25,000/year, and received $900 refund.

I still get more back at the end of the year than I put in. I've lived this first hand.

I've always lived 'below' the poverty line, and I know personally that poverty in America is bullshit.

 

[RDD_1210]

We need a fair flat tax in the US. No excuses, no exceptions and no loopholes. Having 50% of the people carry the other 50% is just downright unfair.

You're free to start paying taxes and become part of the 50% who do pay if it bothers you so much.

 

[edjax1952]

The original intent of this post was to debunk the notion that 50% of people were not paying taxes. It is already evident that they do pay taxes but get endowments to exceed their taxes.

 

[Full-Auto]

The original intent of this post was to debunk the notion that 50% of people were not paying taxes. It is already evident that they do pay taxes but get endowments to exceed their taxes.

SO THE BOTTOM LINE.

Paid taxes were returned with a bonus.

 

[Truthmatters]

They pay all sorts of taxes.


We use the income tax to level the playing field for people who need some of that money back to help them survive.

 

[Google]

The original intent of this post was to debunk the notion that 50% of people were not paying taxes. It is already evident that they do pay taxes but get endowments to exceed their taxes.

INCOME TAXES and yes around 50% of all tax returns had zero liability.

By debunk, do you mean not provide any evidence to the contrary?

 

[WillowTree]

We need a fair flat tax in the US. No excuses, no exceptions and no loopholes. Having 50% of the people carry the other 50% is just downright unfair.

You're free to start paying taxes and become part of the 50% who do pay if it bothers you so much.

I'm already there liar, why don't you catch up? get a little patriotic whythehelldonchya?

 

[Alessa]

People making under $50,000 a year typically have a zero percent tax liability. Some even have a negative tax liability as one person pointed out, and they get money back on their tax return. I agree that the tax system we have now is in dire need of reform, but unless government spending is reduced, tax reform will not improve the economy in the least. In fact, it could be more detrimental.

 

[Truthmatters]

45% of households owe no federal income tax for 2010 - Apr. 17, 2011



For tax year 2010, roughly 45% of households, or about 69 million, will end up owing nothing in federal income tax, according to estimates by the nonpartisan Tax Policy Center. Some in that group will even end up getting paid money from the federal government.

That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.

And the group doesn't necessarily get off scot-free when it comes to payroll taxes -- which support Social Security and Medicare.

More than two-thirds -- or 49 million of the 69 million households -- pay payroll tax. Of those, 34 million end up paying more in payroll taxes than they get back on their federal return. The other 15 million pay payroll tax but they get enough refundable credits to offset what they paid

 

[WillowTree]

The original intent of this post was to debunk the notion that 50% of people were not paying taxes. It is already evident that they do pay taxes but get endowments to exceed their taxes.

It's undebunkable asswipe. It's a fact.

 

[Truthmatters]

Willow its 45% not 50%

 

[Two Thumbs]

3 years ago, I started doing my own taxes again, it's easy to do online now.

since then, I have gotten more back than I have put in every year.

so unless my tax credits or breaks are removed/lowered, I will continue to get more back.

I don't know if the 50% claim is true, but the claim that it does occur is very true.

So you're saying that you're part of the "mooching" class of society?

preatty much.

As much as it pisses me off that the government puts me on welfare with these cuts, I'm not going to dick with my tax return and get an invite to see my neighborhood IRS agent.




I actually qualify for a number of hand outs, We don't take them b/c we want our children to learn the value of money and an advanced education.

 

[Truthmatters]

34 million end up paying more in payroll taxes than they get back on their federal return

 

[Two Thumbs]

3 years ago, I started doing my own taxes again, it's easy to do online now.

since then, I have gotten more back than I have put in every year.

so unless my tax credits or breaks are removed/lowered, I will continue to get more back.

I don't know if the 50% claim is true, but the claim that it does occur is very true.

How much unreported income do you have?

None.

How much do you have?

 

[edjax1952]

The original intent of this post was to debunk the notion that 50% of people were not paying taxes. It is already evident that they do pay taxes but get endowments to exceed their taxes.

INCOME TAXES and yes around 50% of all tax returns had zero liability.

By debunk, do you mean not provide any evidence to the contrary?

If you read my original content, I eluded to the idea that the claims were Orwellian. If you are not familiar with that term , it refers to the writings of George Orwell who wrote the book "1984" in which he expressed a concern that the government would use a twist of words or phrases to create new meanings to those words and phrases. I invite you to enlighten yourself.
1984 by George Orwell isbn 0-452-28423-6
Read George Orwell's writings on line at: http://ebooks.adelaide.edu.au/o/orwell/george/

 

[Truthmatters]

Are you guys purposefully ignoring the facts being given you?

 

[Truthmatters]

45% of households owe no federal income tax for 2010 - Apr. 17, 2011



For tax year 2010, roughly 45% of households, or about 69 million, will end up owing nothing in federal income tax, according to estimates by the nonpartisan Tax Policy Center. Some in that group will even end up getting paid money from the federal government.

That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.

And the group doesn't necessarily get off scot-free when it comes to payroll taxes -- which support Social Security and Medicare.

More than two-thirds -- or 49 million of the 69 million households -- pay payroll tax. Of those, 34 million end up paying more in payroll taxes than they get back on their federal return. The other 15 million pay payroll tax but they get enough refundable credits to offset what they paid

I answered the question with cold hard facts people.

The 50% number is a lie

 

[Cecilie1200]

The original intent of this post was to debunk the notion that 50% of people were not paying taxes. It is already evident that they do pay taxes but get endowments to exceed their taxes.

Sorry, but now YOU are using "Orwellian idioms", which apparently is just another way of saying, "dodging the facts".

If your employer took taxes out of your paycheck all year (which he almost certainly did, because it's pretty hard to get away without ANYTHING coming out, ever), and then you turned around and got it all back when you filed your tax return, you did NOT pay taxes for that year.

"Didn't pay taxes" is not a statement about "Ohmigod, these crooks, not bothering to pay any taxes, they're CHEATING". It's a statement about how much of your income the federal government ended up with this year.

And it is, in fact, quite true that the federal government is ending up with none of the income of almost 50% of Americans. It is further true that quite a lot of Americans are actually ending up with other people's income via the federal government when tax time rolls around.

 

[shintao]

3 years ago, I started doing my own taxes again, it's easy to do online now.

since then, I have gotten more back than I have put in every year.

so unless my tax credits or breaks are removed/lowered, I will continue to get more back.

I don't know if the 50% claim is true, but the claim that it does occur is very true.

So you're saying that you're part of the "mooching" class of society?

LOL! It depends on what you call a moocher. The news is reporting "Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans" Did you get your 3 Billion mooch from the government? Neither did I. Most banks did, and that money went into the hands of about a dozen people who shit just like you do. So doesn't it make sense the top 10%ers would pay more and you would pay less? Did you get any benefit out of the trillions borrowed to run the war machine in the ME? I didn't either, but the rich did, they have lined their silk 911 pockets for over 12 years. So shouldn't they pay more taxes for all the profits we provided them with thousands of dead & maimed soldiers and trillions in debt?

Just wrap your head around it.

 

[Truthmatters]

More than two-thirds -- or 49 million of the 69 million households -- pay payroll tax. Of those, 34 million end up paying more in payroll taxes than they get back on their federal return