No Money Owed By Half Of America On Tax Day
29th April 2011 by Tax Man No CommentsApril 18 is a date that lives in infamy for many people as it is Tax Day, the day when income tax returns are as a result of Internal Revenue Service. Despite the resentment towards income taxes, the legal obligation nevertheless exists. Tax Day is certainly resented by the people who have to write the government a check on tax day, however the nearly 50 percent who do not may be fine with it. Article source - Tax day - Nearly half of Americans owe nothing by MoneyBlogNewz.
Income tax paid by 55 percent of Americans
This year, Tax Day 2011 falls on April 18. This is rather than the April 15 typical date. Bloomberg reports that about 45 percent of households will not have to pay any 2010 taxes at all. Low-income households receive exemptions and deductions, for instance the Earned Income Credit and the Making Work Pay Credit. Those who pay no income taxes are very low income or living on a fixed income such as Social Security or disability income. People who have children however make very little also commonly pay no income taxes. CNN reports that $3,003 was the average tax refund last year.
Those making money do not pay as much
For a while, wealthier tax payers have been paying less, reports Daily Finance. In 1992, the 400 returns with the highest reported incomes averaged a tax bill of 26 percent of their income, however that figure were 17 percent in 2007. The wealthiest 5 percent account for 44 percent of the nation’s tax revenue while the top 10 percent is more than half of it. The tax breaks for the rich are becoming more readily available also. Each year, $8,000 could possibly be given to every taxpayer with the over $1 trillion in tax breaks in the U.S. tax code. However, trying to catch the Internal Revenue Service napping is not a good idea. The Internal Revenue Service is more likely to press charges now than at any point in the past decade, according to USA Today.
Developed countries typically pay more in taxes than Americans
Though several individuals protest the United States tax system for myriad reasons, most technical literature reveals that Americans pay very little income tax in contrast to the rest of the developed world, according to MSNBC. Taxes are reviewed by the OECD, or Organization for Economic Co-operation and Development. This group keeps developed world tax information maintained. In America, a 24 percent tax on income is common while it is at 27 percent in Australia, 37 percent in Germany, 42 percent in France and 48 percent in Danes, states the OECD.
Citations
Bloomberg
bloomberg.com/news/2011-04-18/nonpayers-complicate-republican-effort-at-overhaul-of-u-s-tax-code.html
CNN
money.cnn.com/2011/01/14/pf/taxes/tax_refund/index.htm
Daily Finance
dailyfinance.com/2011/04/18/super-rich-see-federal-taxes-drop-dramatically/
USA Today
usatoday.com/money/perfi/taxes/2011-04-17-Prosecutions-of-tax-evaders-up.htm
MSNBC
msnbc.msn.com/id/42612937/ns/business-tax_tactics
