Don’t forget today is the deadline to file your federal taxes — that is, if you’re in the half that’s paying the tab for the other half. Here is Catey Hill at Marketwatch.com:
77.5 million households do not pay federal individual income tax.
Many Americans don’t have to worry about giving Uncle Sam part of their hard-earned cash for their income taxes this year.
An estimated 45.3% of American households — roughly 77.5 million — will pay no federal individual income tax, according to data for the 2015 tax year from the Tax Policy Center, a nonpartisan Washington-based research group. (Note that this does not necessarily mean they won’t owe their states income tax.)
Roughly half pay no federal income tax because they have no taxable income, and the other roughly half get enough tax breaks to erase their tax liability, explains Roberton Williams, a senior fellow at the Tax Policy Center.
Despite the fact that rich people paying little in the way of income taxes makes plenty of headlines, this is the exception to the rule: The top 1% of taxpayers pay a higher effective income-tax rate than any other group (around 23%, according to a report released by the Tax Policy Center in 2014) — nearly seven times higher than those in the bottom 50%.
Read more: MarketWatch.com
Image credit: Tax Policy Center.
