Tax Day 101: Who Pays No Income Taxes on April 15?
Trumbull, Mark, The Christian Science Monitor
Nearly half of all Americans pay no income taxes on April 15, including some people who are millionaires. Is this fair? A look at who pays what on tax day.
When tax day rolls around on April 15, nearly half of Americans will have paid no federal income tax - because they don't legally owe any. Millions of others will pay a tax - but at rates that can vary widely based on circumstances.
Is this fair?
It's a debate that goes back as far as the income tax itself. But the issue is a hot one now as the nation is transitioning from tax policies of former President Bush to those of President Obama. It's a transition from an era of tax-rate cuts for all income brackets to a time of rate hikes for high-earning households alongside broad new credits and rebates intended to boost a still-weak economy.
And the change comes at a time of financial stress for both households and the government budget.
Whether you favor a flat tax, the "fair tax," a soak-the-rich tax, or no tax (where can we get that deal?), here's some food for thought - facts about who pays what in taxes:
- The roughly 45 percent of Americans who owe no income tax are heavily weighted in certain groups based on income and family status, according to the The Tax Policy Center, the nonpartisan research group that has run the numbers. …