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61% Of Taxpayers, Or More Than 100 Million US Households, Paid No Federal Income Taxes Last Year
Posted by: Tax Policy Center ()
Date: August 20, 2021 08:45PM

61% Of Taxpayers, Or More Than 100 Million US Households, Paid No Federal Income Taxes Last Year

The majority of US taxpayers - 61% - paid no federal income taxes last year due to the pandemic and ensuing policy response, according to CNBC, citing a new report by the Tax Policy Center.

The pandemic and federal stimulus led to a huge spike in the number of Americans who either owed no federal income tax or received tax credits from the government. According to the Urban-Brookings Tax Policy Center, 107 million households owed no income taxes in 2020, up from 76 million — or 44% of all taxpayers — in 2019. -CNBC

"It’s a really big number," said Tax Policy Center fellow, Howard Gleckman, adding "It's also really transitory."

According to Gleckman, high unemployment combined with large stimulus checks and generous tax credit programs (set to expire after 2022) account for the majority of the spike. He expects the share of nontaxpayers to fall starting next year.

The share of Americans who pay zero income taxes is expected to stay high, at around 57% this year, according to the Tax Policy Center. It’s expected to fall back down to 42% in 2022 and remain at around 41% or 42% through 2025, “assuming the economy continues to rebound and several temporary tax benefits expire as scheduled,” Gleckman said. -CNBC

Helping to ease the tax burden were pandemic-related increases in the child tax credit, the earned income tax credit, and the child and the dependent care tax credit - which together erased federal taxes owed for millions of American families.

This year, no household making under $28,000 will pay any federal taxes due to the credits and tax changes, according to the report - whereas around 43% of middle-income households are expected to pay federal income tax. According to Gleckman, the offsets in dollar terms were small for many families.

"Imagine somebody who would have owed $1,500 in 2020 income tax until they got two stimulus payments — $1,200 in April and $600 in December," he told CNBC. "That threw them into the category of nonpayers. While the payments resulted in a large percentage increase in their after-tax income, the dollar amount of their tax cut was only a tiny fraction of a high-income filer who received a tax cut of, say, $30,000 from the 2017 [Tax Cuts and Jobs Act], yet still owed some tax."

In 2020, the top 20% of taxpayers paid 78% of federal income taxes, according to the Tax Policy Center, which was up from 68% in 2019. The top 1% of taxpayers paid 28% of taxes in 2020, up from 25% in 2019.

https://www.taxpolicycenter.org/taxvox/covid-19-pandemic-drove-huge-temporary-increase-households-did-not-pay-federal-income-tax

https://www.zerohedge.com/personal-finance/61-taxpayers-or-more-100-million-us-households-paid-no-federal-income-taxes-last

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Re: 61% Of Taxpayers, Or More Than 100 Million US Households, Paid No Federal Income Taxes Last Year
Posted by: This Checks Out! ()
Date: August 20, 2021 09:14PM

This Checks Out!

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Re: 61% Of Taxpayers, Or More Than 100 Million US Households, Paid No Federal Income Taxes Last Year
Posted by: Pc Retardz. ()
Date: August 21, 2021 02:31AM

Good.
Starve the Beast!!

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Re: 61% Of Taxpayers, Or More Than 100 Million US Households, Paid No Federal Income Taxes Last Year
Posted by: MESIgoal ()
Date: September 15, 2021 09:21AM

I once also can't afford to pay taxes, I even had to take out a loan because they were too large. But how good that I found this platform that helped me figure out how to have a passive good income on the Internet. I am sure that this is the best way to make money. And I was able to pay off all the loan.

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Re: 61% Of Taxpayers, Or More Than 100 Million US Households, Paid No Federal Income Taxes Last Year
Posted by: Restore the sanity ()
Date: September 15, 2021 01:56PM

The Internal Revenue Code used to be a way to raise funds needed to pay for government operations or programs. Whether you are talking about low income people or businesses up to multinationals it is increasingly becoming a welfare system. Republicans are just as guilty of this as Democrats. Trump supporters are just as guilty as Progressives.

A fundamental philosophical change is needed if we want to restore sanity. Except for low income people who pay social security taxes everyone should pay some income taxes. Tax credits need to be severely reduced. The method of computing taxes on tax favored income needs to change, assuming tax favored income is retained. A revenue raising estate tax needs to be reinstated, but solely on cash and negotiable securities, with other inherited assets passing to the beneficiaries at $0 basis. Replacing business income tax with a gross receipts tax on domestic sales should be explored.

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Re: 61% Of Taxpayers, Or More Than 100 Million US Households, Paid No Federal Income Taxes Last Year
Posted by: DanielLee5 ()
Date: October 10, 2021 06:43AM

The number is huge, 61% is really something impressive. I can't say that making all the pay offs was easy for me, I was about to use additional services like Jackson Hewitt or something (I find it due to these reviews jackson-hewitt.pissedconsumer.com ).

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