Friday, September 21, 2012

MISCONCEPTIONS AND REALITIES ABOUT WHO PAYS TAXES

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http://www.cbpp.org/files/5-26-11tax.pdf

Close to half of U.S. households currently do not owe federal income tax.  The Urban Institute-Brookings Tax Policy Center estimates that 46 percent of households will owe no federal income tax for 2011. 1  A widely cited figure is a Joint Committee on Taxation estimate that 51 percent of
households paid no federal income tax in 2009.2  (The TPC figure for 2009 also is 51 percent.) 3 These figures are sometimes cited as evidence that low- and moderate-income families do not pay sufficient taxes.  Yet these figures, their significance, and their policy implications are widely misunderstood.

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