47% of US households pay no federal income tax at all

[w¡n9Nµ7 §£@¥€r 123]

About 47 percent [of U.S. households] will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability.

...

Credits for low- and middle-income families have grown so much that a family of four making as much as $50,000 will owe no federal income tax for 2009, as long as there are two children younger than 17.

...

Tax cuts enacted in the past decade have ... result[ed] [in] a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners — households making an average of $366,400 in 2006 — paid about 73 percent of the income taxes collected by the federal government.

The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment.

...

In 2007, about 38 percent of households paid no federal income tax, a figure that jumped to 49 percent in 2008, according to estimates by the Tax Policy Center.

...

Obama has pushed tax cuts for low- and middle-income families ... The nation's wealthiest taxpayers did get big tax breaks under Bush.

...

Income tax rates were lowered at every income level. The changes made it relatively easy for families of four making $50,000 to eliminate their income tax liability.

Here's how they did it, according to Deloitte Tax:

The family was entitled to a standard deduction of $11,400 and four personal exemptions of $3,650 apiece, leaving a taxable income of $24,000. The federal income tax on $24,000 is $2,769.

With two children younger than 17, the family qualified for two $1,000 child tax credits. Its Making Work Pay credit was $800 because the parents were married filing jointly.

The $2,800 in credits exceeds the $2,769 in taxes, so the family makes a $31 profit from the federal income tax.

http://news.yahoo.com/s/ap/20100407/ap_on_bi_ge/us_no_taxes

[mawilson 2,133]

Income tax rates were lowered at every income level. The changes made it relatively easy for families of four making $50,000 to eliminate their income tax liability.

Here's how they did it, according to Deloitte Tax:

The family was entitled to a standard deduction of $11,400 and four personal exemptions of $3,650 apiece, leaving a taxable income of $24,000. The federal income tax on $24,000 is $2,769.

With two children younger than 17, the family qualified for two $1,000 child tax credits. Its Making Work Pay credit was $800 because the parents were married filing jointly.

The $2,800 in credits exceeds the $2,769 in taxes, so the family makes a $31 profit from the federal income tax.

http://news.yahoo.com/s/ap/20100407/ap_on_bi_ge/us_no_taxes

Beautiful... but $50k for a family of four?

[w¡n9Nµ7 §£@¥€r 123]

Beautiful... but $50k for a family of four?

I suppose that might be a living wage in Bumblefuсk, Arkansas.

[Usui Takumi 1,562]

This could also be showing a growing income divide. IE more of the country is slipping towards lower income.

Edited April 7, 2010 by Sousuke

[I AM NOT THAT GUY 5,715]

About 47 percent [of U.S. households] will pay no federal income taxes at all for 2009.

http://news.yahoo.com/s/ap/20100407/ap_on_bi_ge/us_no_taxes

Deadbeat Democrats, no doubt!

[Usui Takumi 1,562]

Deadbeat Democrats, no doubt!

[w¡n9Nµ7 §£@¥€r 123]

Deadbeat Democrats, no doubt!

A sound conclusion, amply demonstrated by the exit polling data. See screenshot to see just how clear the data is on this

[PhiLandShiR 18]

A sound conclusion, amply demonstrated by the exit polling data. See screenshot to see just how clear the data is on this

Only thing that shows is that more Dems voted than Repubs...

[Usui Takumi 1,562]

Only thing that shows is that more Dems voted than Repubs...

Really it does? Why I don't see the word democrat or republican anywhere on that chart. Hmmm.

[mawilson 2,133]

No wonder we're up to our ears in debt.

It's time we started taxing those deadbeats... 47% of US households is a LOT of tax dollars.

I don't care if they make $100/month, they have to pay *some* tax.

[Hilarious Clinton 452]

Everyone needs to have some skin in the game.

[SMOKE 1,426]

No wonder we're up to our ears in debt.

It's time we started taxing those deadbeats... 47% of US households is a LOT of tax dollars.

I don't care if they make $100/month, they have to pay *some* tax.

oh they will soon, count on it. obama isn't done w/ his shinny new credit card yet, so we'll all be paying through the nose soon.

[Danno 1,228]

No wonder we're up to our ears in debt.

It's time we started taxing those deadbeats... 47% of US households is a LOT of tax dollars.

I don't care if they make $100/month, they have to pay *some* tax.

The first step would be to stop "giving" people money at tax time in the form of the -Earned income tax credit.

That is, thousands of dollars in tax rebates which were never even paid in.

This concept which started as a way to remove a tax "burden" from the low earners has evolved into a cash pay out.

[Usui Takumi 1,562]

Everyone needs to have some skin in the game.

Yeah I'll agree with that...like a minimum tax rate that credits can't take you below such as 4% or similar.

[mawilson 2,133]

Yeah I'll agree with that...like a minimum tax rate that credits can't take you below such as 4% or similar.

The AMT for deadbeats.