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April 15, 2010 8:58 AM

47% pay no taxes this year

From CitizenLink - whose email updates you may want to subscribe to also:
 

Tax Day Turning Into Pay Day

 by Kim Trobee, editor


Income tax day now divides Americans into two classes: Those who pay, and those who don't.

As tax day approaches, more Americans will not pay anything into the federal coffers.  

The Tax Policy Center, an independent tax research organization, estimates that 47 percent of all U.S. households will pay no federal income tax for 2009.  The center speculates that it's a result of a large number of low-income families and those getting tax credits.

Phyllis Schlafly, founder of Eagle Forum, said the disparity is turning the U.S. into a two-class society.

"There are the people who pay taxes to run the government and the people who don't pay federal income taxes to run the government," she said.  "The ones who do not pay taxes have the same vote as the people who do, so it doesn't cost them anything to vote 'bigger-spending' and 'spread-the-wealth.'"

According to The Heritage Foundation, the top 1 percent of income-earners paid 40 percent of all federal income tax, in 2007.  That number is expected to rise.

Scott Hodge, president of the Tax Foundation, said that means a select group of Americans is shouldering an incredible financial burden.

"Does it make sense to have a majority of Americans get more from government than they're paying in taxes - to have no skin in the game anymore?" he asked.  "I think that that has all the makings for a lot of social discontent."

A Gallup poll released today shows 48 percent of respondents said they pay too much in income tax.  Surprisingly, 45 percent said the amount they pay is about right.

"Essentially we've turned the IRS into a giant ATM machine for Welfare benefits," Hodge said.  "Far too many Americans now get tax credits.  They get a check back even if they don't pay any income taxes."

Schlafly said the Obama administration's policies are not providing any relief for those who continue to pay into the system.

"On the eve of Obama's election, he said he wanted to engage in fundamental transformation of the United States," she said. "I think that's what he is doing through the high taxes."


I'll be honest:  with Tripp now driving a school bus and six dependents, our income was low enough that we did not pay taxes this year.

But no way will I vote to keep it that way.  This is just plain wrong. 
Love,
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Comments

So essentially, there's 2% of non-paying households that believe they are over taxed. Go figure.

Posted by: Dirtdartwife | April 15, 2010 9:38 AM

Because of our 10 children, and with 6 still under 17, we get enough tax credits to get a large refund. The best thing about this situation, is that the tax credits have allowed me to remain home full time to raise our children. We frugaly use the refund to pay for ever escalating medical bills, and everything else that comes up over and above our monthly income. However, I do not think this is a fair way for paying taxes. Everyone should pay federal taxes and I would never vote to keep anyone in office solely based on how much I could get in return.

Posted by: Julie | April 15, 2010 9:55 AM

This is infuriating. We also fall into the no-pay category. We only have 2 children (I don't work), and my husband's income has grown slightly each year...yet the past few years we've not only not had to pay anything in, but we've received a refund (larger each year). This makes NO sense! Like the commenter above me, we don't spend it on anything frivolous; it always goes into savings until we hit a period where we need the cash. This year it will be to replace our lawnmower, which was stolen last year.

But I agree 100% that this is unfair. It's actually infuriating to know that our income is as "high" as it is (30k) and we are not only not paying anything, but receiving a growing amount back each year.

Posted by: cam | April 15, 2010 11:13 AM

Personally I do not think anyone should pay income taxes. I would prefer a National Sales Tax...that would be fair!

Posted by: Beth Lambdin | April 15, 2010 11:20 AM

I almost want to die when I see how much we are paying in taxes each year. It is simply ridiculous!!!!!! I am a Stay at Home Mom (to raise my son with autism) but my husband owns a vet clinic. Let's just say that the tax burden is completely crippling...and I might need to go back to work to help keep our heads above water. Then again, my income will be taxed federally more than 50% next year, which begs the question, is it really worth it for me to work??? What a dilemma. Either way, we're in a pickle...and the problem is taking away from our ability to pay for our son's needed autism therapies. Thank you for your honesty in admitting that the current system is completely unfair. Thank you in advance for voting to change.

Posted by: Sara | April 15, 2010 12:10 PM

Well, I guess things are improving since last year 49% of US households did not owe tax. That was the big spike from 38% in 2007 due to the economy and Bush tax cuts

If the economy improves and households get more income, we'll get a higher % paying taxes this year. I know many families, like yours, Barbara who are not paying this year and/or last year, and they are not at all happy about the situation because the reason is NOT that they got any windfalls. They would love to be making enough to owe.

Posted by: Cath Young | April 15, 2010 1:33 PM

[Note from Barbara: I don't post comments with fake email addresses]

Posted by: distorted info | April 15, 2010 3:01 PM

I can't quite decide what to think of this story. The more I see it, the more it confuses me. My family usually recieves a refund, mainly from morgage intrest. I feel sligtly bad about not paying on one hand. But than again my husband works full time, I work part-time no child deductions.
50 or so years ago many households had one member working about 40 hours a week, so that was 40 hours a week worth of with-holded taxes per household. With two working my family has about 65 hours worth of wages withheld per week for taxes. So I guess we should not have to owe taxes after having so many more hours of witheld wages than some of the previous generations??

Posted by: Melanie | April 15, 2010 9:23 PM

Articles like this [about only half of American households owing income tax] drive me crazy, because hard-working families with children and a lower income get lumped in with the freeloaders and deadbeats. I think that this no-income-tax-equals-freeloader sentiment is going to be used to tighten the screws on Godly families in the future.

The truth is that income tax is only one small piece of the federal tax pie. My great-grandparents probably never paid any income tax at all; the first income tax came later in their lives, was very low, and only affected the rich. That owing income tax is now practically a virtue reflects the expansion of tax obligations (and the federal government) over the years.

Nearly all of the households that don’t pay income tax today pay Social Security and Medicare taxes (a huge part of the federal budget), as well as many other taxes. Just wait until they slam the VAT through!

Posted by: Peggy | April 17, 2010 10:38 AM

This frustrates me.

Back when I was paying high taxes I did not begrudge that 47% for not paying their share. It is the working poor that keep this country afloat. Not through their taxes but through their SWEAT. They are working their tails off...often times for very poor benefits and very low pay... so that certain other professions can prosper off of their labor.

If the doctor makes 6x more income than his nurse who does most of the hard work, is it really so unfair that the doctor pays a lot more taxes than the nurse? I am having a hard time feeling bad about that.

The idea that the taxation isn't fair seems to presuppose that ANYTHING about how our economy works is fair. It isn't... everything is set up to benefit a FEW.. and the rest are given scraps from the table.

I am not defending the democrats or the republicans in my argument. I think both have contributed to our horrible economic situation.

Posted by: paigeu | April 19, 2010 8:23 PM

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