Monday, October 05, 2009

47% Will Pay No Income Tax in 2009

The increasing number of households paying no taxes is a trend that may be unsustainable:

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.

Here is how government spending has increased over the past 40 years. Blogger Joe Kristan argues this is what happens when a few taxpayers bear the burden of federal spending.

Here is a breakdown of how people voted in the 2008 presidential election based on income level, which seems to lend support to Joe's hypothesis. Those most likely to pay zero taxes overwhelmingly favor the party most in favor of expanding federal programs.

(HT Paul Caron)


thinking said...

BTW, where were these people when the Bush tax cuts were being enacted, and blowing a hole in our budget?

thinking said...

Here's Warren Buffet speaking to a crowd of very wealthy people:

"The 400 of us [here] pay a lower part of our income in taxes than our receptionists do, or our cleaning ladies, for that matter. If you’re in the luckiest 1 per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent."

Mr Buffett said that he was taxed at 17.7 per cent on the $46 million he made last year, without trying to avoid paying higher taxes, while his secretary, who earned $60,000, was taxed at 30 per cent."