Life of an Investor

8 April 2010

Are you the 1 out of 2 who pay US taxes?

Nearly half of US households escape fed income tax

You may have already heard about this.  I have heard about it at least two time since yesterday.  I think the news people like it because it makes a great headline that gets a reader’s attention.  You can read the original article at Yahoo.

Here are a few surprising findings in the article:

  • About 47 percent will pay no federal income taxes at all for 2009.
  • A family of four making as much as $50,000 will owe no federal income tax for 2009.
  • The top 10 percent of earners paid about 73 percent of the income taxes
  • The bottom 40 percent, on average, make a profit from the federal income tax.
  • In 2007, about 38 percent of households paid no federal income tax, a figure that jumped to 49 percent in 2008

It’s just my personal opinion, but I think that most families could make it on$50,000 a year with a family of four.  I’m all for tax cuts, but not for tax handouts.  I’m also for a more fair tax code.  Is there any reason that one person should be getting checks from the government while someone who worked hard (thus improving the economy) has to hand more than one-third of his income to the government?  I happen to have an extended family member who a few years ago was receiving a check from the government when it came around to tax time.  His family wasn’t struggling.  They lived in fairly affluent neighborhood, his wife chose to stay home and he was working his way up in a professional career, but just getting started.  Apparently, this is the new definition of poverty in America.


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3 Comments currently posted.

Chris Sumpter says:

No, I am not.

matthew says:

Congratulations. So, are you one of the 40% that the government sends a check to, just for filling out your tax form?

Carnival of Personal Finance #252: Famous People With Tax Troubles Edition says:

[...] Sumpter from Life Of An Investor presents Are you the 1 out of 2 who pay US taxes?. From “love thy neighbor” to “mooch thy [...]

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