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RE “ For tax year 2010, roughly 45% of households, or about 69 million, will end up owing nothing in federal income tax, according to estimates by the nonpartisan Tax Policy Center. Some in that group will even end up getting paid money from the federal government. That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.
And the group doesn't necessarily get off scot-free when it comes to payroll taxes — which support Social Security and Medicare. More than two-thirds — or 49 million of the 69 million households — pay payroll tax. Of those, 34 million end up paying more in payroll taxes than they get back on their federal return. The other 15 million pay payroll tax but they get enough refundable credits to offset what they paid. “

A big problem. These people are not overtaxed, although they may think so.

Democrats/Socialists will always be able to go to these voters and say: “Republican’s plan will make you pay more” when talking about proposed budget cuts like Medicare. This group will always (generally) see the wisdom of ‘tax increases on the rich’.

And they are still 'entitled' to Medicare and Social Security.

For tax year 2010, roughly 45% of households, or about 69 million, will end up owing nothing in federal income tax....

Does that mean that, after they subtract the amount withheld for income tax, they "end up owing nothing?"

Or does it mean that their income tax is actually zero, and they get back all the money withheld in their refunds?

More than two-thirds -- or 49 million of the 69 million households -- pay payroll tax. Of those, 34 million end up paying more in payroll taxes than they get back on their federal return. The other 15 million pay payroll tax but they get enough refundable credits to offset what they paid. (Get a 'receipt' for your taxes)

Sounds like the title is misleading. If they withheld $5000 from your pay and you got $3000 in a refund, you still paid $2000 tax. Sounds like about half of the 45% actually did pay some income tax.

Agree with your comments. It is such a mixed bag. I grossed under $25K in 2010. Still ended up paying 25% between SS, FICA, Fed, State, Local (more then the state in my case).
Not everyone fits into the same set of conditions. What is obviously wrong are for so many that work under the table so to speak, often making pretty good money and not paying a dime in any tax. And some being so proud of that fact.