According to The Tax Foundation, 43 million Americans face zero or negative tax liability . Is this the same as saying 43 million Americans pay no federal taxes, as the website implies?
http://www.taxfoundation.org/research/sh...
Actually, the headline is a little misleading...according to their own article (first paragraph) 43 million returns filed by Americans had zero tax liability - these 43 million returns covered over 90 million Americans. And to further answer your question, yes, those Americans pay no taxes. More Than Half of US Companies Pay No Income Tax | taxgirl:: If the trends in the survey are accurate, nearly one quarter of large US Foreign-owned corporations are required to file and pay federal income taxes if Over Half of U.S. Corporations Pay No Income Tax | Middle Class Impact .. allocate a million hardworking Americans to tax code shenanigans instead of http://www.taxgirl.com/more-than-half-of-us-companies-pay-no-income-tax/HOME |
They may pay taxes during the year, but they get more than that amount back at the end of the year. For example, someone making $100/week might get $10/week withheld, for a total of $520, but then might get a refund for $600. In general, wealthier taxpayers will be hit with the AMT (alternative minimum tax), so those 43 million filings (representing 90 million people) are generally poor. Tax Cuts = More Spending? - Nick Schulz - National Review Online:: May 19, 2006 But these writers pay insufficient attention to another implication of Simply put, Americans view government spending as no bargain. who file no tax return at all, roughly 121 million Americans or 41 percent of the U.S. population will be completely outside the federal income tax system. http://article.nationalreview.com/?q=MzAwMWJmMjE2M2UwN2YyNjI3NDIyZTI5ZWQyMWY1NGE=HOME |
You were informed wrong - tax liability for the year is your total for the year minus what's refunded, not just what you owe when you file, and includes your withholding for income tax. If someone has no tax liability for the year, then if they had anything withheld for income tax it will be refunded.
In response to Additional Details:
This is not quite true. Tax liability refers to the total amount you pay for the year, including the amount withheld from your paycheck, plus the additional amount you pay in April (or minus the refund you are due in April). Thus, if these people work, they get a refund in April equal to the total amount they have had withheld during the year. These are almost entirely very poor people (rather than very rich people), many of whom are disabled, unemployed, in prison, or only marginally employed.
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