All the reports on this is that 50% of Americans of majority age don't pay Federal income taxes (actually the number was 46%)!!! This is a true statement, but the devil is in the details.
'46% in U.S. don't pay taxes' only half the story - SFGate
In that 46%, they are also including people on SOCIAL SECURITY! Social security benefits are not taxed! 22% (55 million Americans) of ALL Americans are on social security and 3/4 of that are retirees. Most of these retirees were tax payors before being on SS.
Social Security Adminstration: Social Security Basic Facts
So take the 22% of Americans on Social Security out of the equation. Now you have 78% of non-minor Americans left. Since that 22% is pealed away from the 46% that don't pay taxes. What are the percentage of non-SS Americans that pay federal income taxes. I bet it shifts to more 70-30% payors vs non-payors.
And don't forget everyone pays the payroll tax.
'46% in U.S. don't pay taxes' only half the story - SFGate
In that 46%, they are also including people on SOCIAL SECURITY! Social security benefits are not taxed! 22% (55 million Americans) of ALL Americans are on social security and 3/4 of that are retirees. Most of these retirees were tax payors before being on SS.
Social Security Adminstration: Social Security Basic Facts
So take the 22% of Americans on Social Security out of the equation. Now you have 78% of non-minor Americans left. Since that 22% is pealed away from the 46% that don't pay taxes. What are the percentage of non-SS Americans that pay federal income taxes. I bet it shifts to more 70-30% payors vs non-payors.
And don't forget everyone pays the payroll tax.