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Agreed. He uses some funny wording, and separates the content, so you won't notice. "For tax year 2010, roughly 45% of households, or about 69 million, will e
by wccrawford 16y ago
Agreed. He uses some funny wording, and separates the content, so you won't notice.
"For tax year 2010, roughly 45% of households, or about 69 million, will end up owing nothing in federal income tax,"
"More than two-thirds -- or 49 million of the 69 million households -- pay payroll tax. Of those, 34 million end up paying more in payroll taxes than they get back on their federal return. The other 15 million pay payroll tax but they get enough refundable credits to offset what they paid."
In short, 34 million of the 69 million pay more in taxes than they get back on their federal tax return. They don't -owe- anything because they pre-paid it.
So now we're down to roughly 25% of households not paying income tax because they don't earn enough or have other tax breaks. It still seems like a lot, but there's a lot of poverty out there, so it doesn't really surprise me.
- nostromo 16y agoNo, you're confusing the difference between payroll tax and income tax. Payroll tax (as he is using it in the article) is not the amount of federal income tax you pay from your paycheck, but Social Security and Medicare. It's written confusingly -- but you can search around and find better write-ups, like in the New York Times, if you'd like to know more.