Half Of Americans Will Pay NO Federal Taxes - Really?

According to the nonpartisan Tax Policy Center, 47% of American families will actually have no federal income tax liability or in many cases, will actually receive money back from the government in the form of refundable tax breaks. These estimates are based on the recently enacted bailouts and current tax policy. They’ll likely change even more given the administration’s projected taxation policy. While the majority of families in this situation are earning less than $40,000, I was surprised to see that 22% of those making between $50,000 and $75,000 and 9% of households with incomes between $75,000 and $100,000 will be in this situation as well! So, let me get this straight -

Someone making $90,000 pays no federal taxes???

I get the progressive tax thing, really. I mean, someone living on $25,000 trying a put clothes on their kids’ backs and food on the table has enough trouble as it is with state and other taxes. But, when you get up to the 6-figure level, even in high cost areas, why does any family have no tax liability? While it’s only 9%, that’s still 1 in 11. That sounds rather high for such a handsome income.

The problem with this equation is the enormity of people paying no taxes. Half. That’s a lot on the shoulders of a decreasing piece of the pie. And on the topic of the lower income scale having no taxes - while it’s tough to envision dramatically raising taxes on the lower income demographic,

Shouldn’t we all have at least some skin in the game? A 1% minimum tax maybe?

I mean, if we’re all deriving services from our government, paying our soldiers, our government employees, developing the next internet or mission to Mars, I think the “concept” of at least contributing is important. 1% on a $25,000 annual salary is $21 per month.

And who are politicians looking to tap next for more tax increases? The rich - of course. I just cringe when I hear main street railing against “the rich” when the rich as essentially responsible for the majority of the tax revenue in the US.

There used to be a time when Americans admired the rich for their hard work, ingenuity and contributions - for dreaming the American Dream.
Now the successful are scorned.

It’s just a sign of the times I guess.

Disclosure: We have a decent income and admittedly, when the various tax deductions and child tax credits, etc. are accounted for, I am surprised each time when I see what my “effective tax rate” is - it’s actually in the single digits. So, I’m not railing against my personal tax liability because it’s actually not very high, it’s just the broader concept of continuing for focus solely on a particular group of people - the rich - to bear a larger and larger brunt of a tax base that benefits all Americans.

What are your Thoughts? Ask Everyone to Shoulder some of the Burden or just focus on the Rich?

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