Almost One Half of Americans will Pay no Income Taxes This Year

The Tax Policy Center estimates that 46% of Americans will pay no federal individual income taxes this year, but it’s not what you think.  Many of these people are paying other taxes, including payroll, excise, and state/local taxes.  Also, don’t blame tax breaks and loopholes because, of the 46%, roughly half do not pay taxes simply because they do not earn enough income.  Most of the people in the other half of that 46% group are not paying taxes because they are taking advantage of special provisions in the tax code that benefit particular behaviors or groups (i.e., families with children and the elderly).  For more information and a nifty pie graph, see recent Forbes article.

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