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1. According to the Tax Policy Institute, 46% of American households are not expected to pay federal income tax in 2011. It’s not 51%, but that’s still a pretty big number.
2. Of that 46% (that’s roughly 76 million American households), half of them pay no federal income tax due to standard deductions and basic exemptions. In English—it means they’re poor. Our tax system doesn’t tax subsistence level incomes. For example: a married couple making $18,700 a year or less would pay no federal income tax. It’s important to note that they still are subject to Social Security and Medicare taxes, either through their wage withholdings or through their self employment taxes on their federal return. There’s a big difference between “no federal income taxes” and “no taxes ”.
3. That leaves 38 million households that pay no income tax because of special provisions in the tax code.
So what are these special provisions and who is affected by them?
1. 44% of those 38 million households are covered under tax benefits for the elderly. That would include the extra standard deduction for senior citizens and the exclusion of some social security benefits from taxation. (The report also mentions the credit for the elderly, but in reality, I have never, ever prepared a return where someone actually qualified for that credit.)
World of Class Warfare - The Poor's Free Ride Is Over - The Daily Show with Jon Stewart - 08/18/11 - Video Clip | Comedy Central
So let's ask ourselves, who are these 51%?
The Truth About All Those People Who Don
1. According to the Tax Policy Institute, 46% of American households are not expected to pay federal income tax in 2011. Its not 51%, but thats still a pretty big number.
2. Of that 46% (thats roughly 76 million American households), half of them pay no federal income tax due to standard deductions and basic exemptions. In Englishit means theyre poor. Our tax system doesnt tax subsistence level incomes. For example: a married couple making $18,700 a year or less would pay no federal income tax. Its important to note that they still are subject to Social Security and Medicare taxes, either through their wage withholdings or through their self employment taxes on their federal return. Theres a big difference between no federal income taxes and no taxes .
3. That leaves 38 million households that pay no income tax because of special provisions in the tax code.
So what are these special provisions and who is affected by them?
1. 44% of those 38 million households are covered under tax benefits for the elderly. That would include the extra standard deduction for senior citizens and the exclusion of some social security benefits from taxation. (The report also mentions the credit for the elderly, but in reality, I have never, ever prepared a return where someone actually qualified for that credit.)
And the rest after the jump.
why is it they never bytch about the millionaires that pay no taxes?
So is someone that makes $40,000 per year with one child and gets a $5,000.00 refund check when they only paid in $600.00 FWT poor??
Since when did a comedian become an economist?? Does anyone actually believe what this comedian is saying?? Please tell my you don't.
