47% of households owe no tax - and their ranks are growing - Sep. 30, 2009 NEW YORK (CNNMoney.com) -- Most people think they pay too much to Uncle Sam, but for some people it simply is not true. In 2009, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center. Some in that group will even get additional money from the government because they qualify for refundable tax breaks. The ranks of those whose major federal tax burdens net out at zero -- or less -- is on the rise. The center's original 2009 estimate was 38%. That was before enactment in February of the $787 billion economic recovery package, which included a host of new or expanded tax breaks. The issue doesn't get a lot of attention even as lawmakers debate how to pay for policy initiatives like health reform, whether to extend the Bush tax cuts and how to reduce the deficit. The vast majority of households making up to $30,000 fall into the category, as do nearly half of all households making between $30,000 and $40,000. End snip I thought this comment I found on the matter to say all I wanted to say:
Simple is Best Nothing makes more sense to me than a single sales tax: Buyer to Seller, Seller to Local, Local to State, and State to National. Dump the absurdly complex and downright evil IRS. tgsam
It would be great for me, but it doesn't work. Any tax that encourages people to save money rather than spend it will hurt the economy.
How does anyone know that "it doesn't work". At the end of the month it's the simple arithmetic that actually counts. Trying to obscure that fact with economic schemes and economist's blather has dreadfully unpleasant consequences. tgsam
I suppose just like anyone knows "it will work". And if what I posted counts as "economic schemes and economist's blather" then I'm smarter than I thought.
This is just not true. Currently the US economy is an overinflated bubble, people need to start saving and the economy needs to shrink back to it's true size. Keep inflating the bubble is a very very bad idea.
maybe so but a consumption tax could just as easily push it in the wrong direction long term. And the short term effect would be drastic in my opinion.
I agree. Spending needs to be cut and departments need to be cut so the government can run on less money in. More govt. expansion means they need more tax dollars which means taxes go up.
hopefully half of this are elderly. and if 10% are unemployed how do they pay income tax? just sayin, this number isnt as bad as it seems. i dont think elderly not working should pay income tax, nor people in poverty. other than that they should.
It always goes back to exactly that. We have to cut departments and waste in government. Now finding a politician that will actually try to achieve that is the trick.
