The Truth About Who Pays Income Taxes

The Truth About Who Pays Income Taxes

"Nonpayers" - IRS figures show that in 2009, a record 58.6 million tax filers (42 percent of all tax filers) had no income tax liability after taking their credits and deductions. When Congress's Joint Committee on Taxation added to this figure people who earned some income but not enough to file a tax return, it found that 51 percent of American households paid no income taxes. n addition, many nonpayer's receive "refundable" tax credits even though they have no income tax liability. For many nonpayers, the refundable credits more than exceed their payroll tax contributions (so they get back more than they put in).

Income Taxes Paid by the Top 1% v.  Bottom 90% of Taxpayers:

Since 2003, the share of income taxes paid by the top 1 percent of taxpayers (those earning over $343,927 in 2009) has exceeded the share of income taxes paid by the bottom 90 percent of taxpayers (those earning under $112,124 in 2009).

View more information from Marc J. Soss at Florida Estate Planning and Florida Wills & Trusts.   Marc is a frequent contributor to LISI and has published articles and been quoted in the Florida Bar, Rhode Island Bar, North Carolina Bar, Association of the United States Navy, Lawyers USA, Military.Com, Forbes.Com, and CNN Business. Marc also serves as an officer in the United States Naval Reserve.

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