57% of American households paid no income tax last year, study shows

[Loulit01]

A recent analysis from the nonpartisan Urban-Brookings Tax Policy Center estimated that 57% of Americans paid no taxes last year. While that's down slightly from last year's 60%, it marks a significant increase from the 44% recorded before the pandemic began.

Because the stimulus checks were designed as refundable tax credits, they significantly reduced tax liability in both 2020 and 2021, the analysis said. And in some cases, the checks flipped some households from paying income tax to not doing so.

Essentially, no household making less than $28,000 paid federal income tax last year, nor will a majority – about 75% – of those making between $28,000 and $55,000. Among middle-income households, about 43% paid no federal income tax.

Still, while many households did not pay federal income tax, most Americans still owed payroll or state income taxes. The study shows that about four out of five individuals paid at least one of these taxes. Nearly everyone paid the government in another form, whether through state and local sales taxes, excise taxes, property taxes or state income taxes.

https://finance.yahoo.com/news/phot...chts-belong-013747479.html?fr=sycsrp_catchall

Fox Business News often surprises me by telling the truth.

 

[j brown's body]

That's not even counting the rich bastards who don't pay what they owe because the Republicans keep the IRS on a leash.

 

[aociswundumho]

Payroll taxes are a tax on income, and that's about 15%.

 

[Gimmesometruth]

Payroll taxes are a tax on income, and that's about 15%.

water is wet

 

[aociswundumho]

water is wet

The claim is "57% of Americans paid no taxes last year". If they are referring to income taxes, then it's false.

 

[Gimmesometruth]

The claim is "57% of Americans paid no taxes last year". If they are referring to income taxes, then it's false.

I understand you refuse to read most posts, I don't understand why you feel the need to prove it so often.

When will you make it to the last bolded section of the OP and realize it states what you felt the need to post?

Later today?
Tomorrow?
Never?

 

[aociswundumho]

I understand you refuse to read most posts, I don't understand why you feel the need to prove it so often.

When will you make it to the last bolded section of the OP and realize it states what you felt the need to post?

Later today?
Tomorrow?
Never?

How is any of that relevant? I'm sick of people saying that low income people don't pay income tax, because they do. Here is a link to the tax policy center:

The COVID-19 pandemic and the policy response to it led to an extraordinary increase in the number of American households that owed no federal individual income tax in 2020. The Tax Policy Center estimates that last year nearly 107 million households, or about 61 percent, owed no income tax or even received tax credits from the government.

This is bullshit, because if you're working on the books then you are paying payroll taxes, which are taxes on income. And it's a flat 15%, which is a lot to a low income person.

 

[Gimmesometruth]

I'm sick of people saying that low income people don't pay income tax

I'll try one last time, lets see if you can read this:

most Americans still owed payroll or state income taxes. The study shows that about four out of five individuals paid at least one of these taxes.

 

[multivita-man]

A recent analysis from the nonpartisan Urban-Brookings Tax Policy Center estimated that 57% of Americans paid no taxes last year. While that's down slightly from last year's 60%, it marks a significant increase from the 44% recorded before the pandemic began.

Because the stimulus checks were designed as refundable tax credits, they significantly reduced tax liability in both 2020 and 2021, the analysis said. And in some cases, the checks flipped some households from paying income tax to not doing so.

Essentially, no household making less than $28,000 paid federal income tax last year, nor will a majority – about 75% – of those making between $28,000 and $55,000. Among middle-income households, about 43% paid no federal income tax.

Still, while many households did not pay federal income tax, most Americans still owed payroll or state income taxes. The study shows that about four out of five individuals paid at least one of these taxes. Nearly everyone paid the government in another form, whether through state and local sales taxes, excise taxes, property taxes or state income taxes.

https://finance.yahoo.com/news/phot...chts-belong-013747479.html?fr=sycsrp_catchall

Fox Business News often surprises me by telling the truth.

They paid taxes, just not federal income taxes. I also find these kinds of studies or claims spurious. When you have taxes taken out of your paycheck, as everyone does, you're paying taxes. Yes, some are getting rebates/refunds that exceeds their taxes paid, but it's also likely that they have less disposable income.

 

[Peter]

Income tax is not the only tax people pay.
The hyper rich also get away with not paying much income tax as they make sure they get paid in other ways that avoid income tax.

 

[Bullseye]

That's not even counting the rich bastards who don't pay what they owe because the Republicans keep the IRS on a leash.

But a whole of of OTHER rich bastards pay the lion's share of income taxes. Far more than their share of income.

 

[Loulit01]

Income tax is not the only tax people pay.
The hyper rich also get away with not paying much income tax as they make sure they get paid in other ways that avoid income tax.

PERSONAL FINANCE

These two strategies may have helped Trump pay just $750 in federal taxes​

These two strategies may have helped Trump pay just $750 in federal taxes

Who said losses have to be a bad thing? President Donald Trump's business losses have helped him save on his taxes, according to The New York Times. Here's how it works.

www.cnbc.com

A shameful travesty.

 

[Gimmesometruth]

But a whole of of OTHER rich bastards pay the lion's share of income taxes. Far more than their share of income.

nope...

 

[Lord Tammerlain]

I understand you refuse to read most posts, I don't understand why you feel the need to prove it so often.

When will you make it to the last bolded section of the OP and realize it states what you felt the need to post?

Later today?
Tomorrow?
Never?

You realize that most Fox readers do not read past the headline or first paragraph don't you. The part about payroll and state taxes are buried in the article, so that we on debate boards have to argue with morons who say the 57% did not pay TAXES, when they forget to include the statement federal income tax. It is intentionally misleading as they know their audience and their limited attention span

 

[multivita-man]

But a whole of of OTHER rich bastards pay the lion's share of income taxes. Far more than their share of income.

Not at all; they can play all kinds of little tricks to lower their taxable income -- and that's not even addressing the fact they can hide their income in ways the rest of us can't even imagine.

 

[VanceMack]

A large number of them can be found on this site regularly peeing themselves over how unfair it is that the rich that carry their pathetic asses through life don't pay more.

 

[Bullseye]

Not at all; they can play all kinds of little tricks to lower their taxable income -- and that's not even addressing the fact they can hide their income in ways the rest of us can't even imagine.

You can regurgitate all the looney left mantras you want - actual IRS data supports my point.

 

[multivita-man]

You can regurgitate all the looney left mantras you want - actual IRS data supports my point.

Never said that IRS data didn't support your claim; I question the broader implications of your claim.

 

[Bullseye]

Never said that IRS data didn't support your claim; I question the broader implications of your claim.

Nope, you just blathered and the trite slogans and nonsensical mantras of the loony left.

 

[multivita-man]

Nope, you just blathered and the trite slogans and nonsensical mantras of the loony left.

Uh, okay. When you start using phrases like "loony left", time to throw up the deuces and say "Have fun playing with yourself."

 

[Bullseye]

Uh, okay. When you start using phrases like "loony left", time to throw up the deuces and say "Have fun playing with yourself."

Fine by me.

 

[Manc Skipper]

You realize that most Fox readers do not read past the headline or first paragraph don't you. The part about payroll and state taxes are buried in the article, so that we on debate boards have to argue with morons who say the 57% did not pay TAXES, when they forget to include the statement federal income tax. It is intentionally misleading as they know their audience and their limited attention span

They also seem unaware that those numbers mean that more than half of American workers don't earn enough to pay the taxes in question.

 

[OrphanSlug]

This entire thread is textbook as to why serious conversations on taxation cannot be had.

The link in the OP goes to an article about "Photos show the luxury mega yachts that belong to Russian oligarchs — some of whom have hidden their ships as the UK ramps up sanctions."

The only thing I can find, recently, that is about households and taxation is a CNBC article from August 2021 and linked below...

61% of Americans paid no federal income taxes in 2020, Tax Policy Center says

The Tax Policy Center said 107 million households, or 61% of taxpayers, owed no income taxes in 2020. That's up from 76 million, or 44% of taxpayers, in 2019.

www.cnbc.com

With the most important part of the article being at the bottom...

"Federal income taxes do not include payroll taxes. The Tax Policy Center estimates that only 20% of households paid neither federal income taxes nor payroll taxes. And “nearly everyone” paid some other form of taxes, including state and local sales taxes, excise taxes, property taxes and state income taxes, according to the report."

So what do we really want to talk about cause few in this thread so far seem to have much interest in honesty.

 

[ttwtt78640]

How is any of that relevant? I'm sick of people saying that low income people don't pay income tax, because they do. Here is a link to the tax policy center:



This is bullshit, because if you're working on the books then you are paying payroll taxes, which are taxes on income. And it's a flat 15%, which is a lot to a low income person.

Not all ‘on the books’ income is taxable or requires filing a federal income tax return. My Social Security retirement income is not taxable and my 1099 income (from self-employment) while not over $14,250/year (since I am 68) is not taxable. I no longer pay any federal income or FICA payroll taxes.

 

[Vadinho]

This entire thread is textbook as to why serious conversations on taxation cannot be had.

The link in the OP goes to an article about "Photos show the luxury mega yachts that belong to Russian oligarchs — some of whom have hidden their ships as the UK ramps up sanctions."

The only thing I can find, recently, that is about households and taxation is a CNBC article from August 2021 and linked below...

61% of Americans paid no federal income taxes in 2020, Tax Policy Center says

The Tax Policy Center said 107 million households, or 61% of taxpayers, owed no income taxes in 2020. That's up from 76 million, or 44% of taxpayers, in 2019.

www.cnbc.com

With the most important part of the article being at the bottom...

"Federal income taxes do not include payroll taxes. The Tax Policy Center estimates that only 20% of households paid neither federal income taxes nor payroll taxes. And “nearly everyone” paid some other form of taxes, including state and local sales taxes, excise taxes, property taxes and state income taxes, according to the report."

So what do we really want to talk about cause few in this thread so far seem to have much interest in honesty.

Headlines like that do show a bias IMHO, a bias towards sensationalism by carefully selecting a particular tax rather than discuss the entire tax burden all of us pay the feds. We all pay excise taxes, we all pay SSI and Medicare taxes, we pay airport fees, gas taxes and so on. All of these go to the Feds. So the headline was meant to elicit a response that fed into the notion that many of us are getting a free ride. The tax code is a way of promoting policy. Is it right to tax incomes at these low levels when the amount of money that represents could easily be returned by taxing the top brackets more. Is it a moral lesson as Rick Scott says while sitting on his billion dollars of Medicare ripoff money? This is just more of the bizarre idea that if you make poor people even poorer they will have the motivation to work hard and stop being poor. Really? Its all just right wing nonsense to me.