Nearly One Third of All Tax Filers Paid No Federal Income Taxes in 2007

taxfoundation.org ^ | 12/04/09 | taxfoundation

[TornadoAlley3]

About 46.6 Million Filers Were "Nonpayers" Due to Exemptions, Deductions, Credits

Washington, DC, December 4, 2009 -- Nearly one-third of the 143 million federal income tax returns filed in 2007 resulted in no tax payment, according to a Tax Foundation analysis of IRS data. That means the tax filers got back every dollar that had been withheld from their paychecks, and often more. Roughly 46.6 million tax returns, or 32.6 percent, are filed by such "nonpayers," people whose exemptions, deductions and credits wiped out any federal income tax due.

"In about half the cases, additional money was 'refunded' to these tax filers -- meaning they received a check from the government -- similar to welfare spending programs," said Tax Foundation President Scott Hodge, who authored Tax Foundation Fiscal Fact No. 202, "Surge of 'Nonpayers' Will Be Part of Bush Tax Legacy." The Fiscal Fact is available online at http://www.taxfoundation.org/publications/show/25586.html.

[YankeeReb]

Nearly one-third of the 143 million federal income tax returns filed in 2007 resulted in no tax payment

Nowadays that gets you a cabinet post or at least makes you a czar.

[sickoflibs]

How many of that third got tax credits?

[Bob Buchholz]

Those freeloaders that have no skin in the game have absolutely no interest in seeing lower taxes or less government spending. Everyone should have to pay something.

[MrB]

It used to be around 4% that had a “negative” income tax through the eitc.

Not sure what that percentage was in 2007, though.

[Sacajaweau]

Did these folks pay into SS and Medicare??

There's other ways to pay Fed taxes...utilities, gas, cigarettes...and the companies these folks work for are paying taxes...

[MrB]

They should not be allowed to vote.

Pay taxes or don’t vote.

That is why the founders connected voting rights with property ownership - to make sure those voting had skin in the game.

[jaydubya2]

"In about half the cases, additional money was 'refunded' to these tax filers -- meaning they received a check from the government -- similar to welfare spending programs," said Tax Foundation President Scott Hodge

At least these people had a job and paid taxes Scott, not exactly the same as a welfare program.

[ImpBill]

Is the author’s point to excoriate the tax filer’s or the tax code? I happen to have been one of that 1/3 in 2007. Never have a clue on what to expect until I enter the data into the Quicken program that works with my bank. Found I got a income tax credit for something and ended up getting about $300 more back that I had withheld. I generally get all my with-holding back as I am retired and haven’t drawn on my IRA yet.

[maggief]

How many are Democrats? /rhetorical question

[ilovesarah2012]

Yeah, why should the likes of Timmy Geithner get to vote?

[ImpBill]

My, my, my. You seem to be full of yourself.

I worked 45 years and am comfortably retired. Paid taxes all those years and now that I don't have an income and the tax "code" says I don't owe at the end of the year, you want to take away my vote?

Bring a bigger gun than I have to make the attempt.

Or better yet, think before you post!

[MrB]

Geithner paid SOME taxes, just not all that he was supposed to.

[Oldexpat]

I wonder how many of those non-payers used Taxpayer ID numbers rather than SS#. And how many of those got money from the Govt. The reason a lot of illegals file..and file false returns is to get the Earned Income Credit. Work one small job with your Number..work the rest for cash.

[knarf]

Thanks, Bill.

When my wife died in 2004, I learned I had 2 years of a widowers exemption of some kind ... money came back.

And in fact ... I paid taxes out of every paycheck ... so ... am I a taxpayer or not?

[mia]

This is a slam against the Bush policy, nothing else. Don't get your panties in a wad. The bureaucrats (including Democrats) are the very people who put in all the tax exemptions and excluded certain people from having to pay taxes.

This article is pure and simple manipulation so that you will harbor ill will against those who have claimed tax exemptions.

[listenhillary]

the tax filers got back every dollar that had been withheld from their paychecks, and often more.

Social Security and medicare? Careful with those statements.

With the Fairtax, everyone can stop worrying about who is paying income tax, and no one will have a bit of withholding from their paychecks.

[ImpBill]

Of course you are a tax payer.

I don't think Mr. B really thought through what he posted.

I have had that problem at times in the past. Emotions get really charged and I write something and post it before I really think it through.

Conservatives are by nature emotionally charged people. And that isn't all bad either.

[MrB]

Lighten up Francis.

Everyone here knows to whom I was referring.

No one would consider a retiree who paid taxes all his life to be a “freeloader”.

Besides, you probably pay property taxes, right?

[Ann Archy]

This frosts my ass!! EVERYONE should have some skin in the game....EVERYONE!!

A FLAT TAX of 17% and a 10% tax for poor people should be the norm!!