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71 million households or 47% will pay no tax

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What is your reaction to these numbers? In 2009, roughly 47% of households or 71 million will owe not federal tax, according the Tax Policy Center.

Previous estimates were for 36% to pay no tax, but with the stimulus incentives passed by Congress, the numbers are getting larger.

The vast majority of households making less that $30,000 fall into this category, as do nearly 50% of households making between $30,000 and $40,000 per year.


Nearly 22% of those making between $50,000 and $75,000 end up with no federal tax. Only 9% of those with incomes between $75,000 and $100,000 will pay no tax.

When considering federal income taxes in combination with payroll deductions, 24% will pay no taxes.

Of course there is debate on both sides as to whether the current tax policy is the right one. One thing is clear, the federal government can expect fewer tax dollars and hence will have less money to finance the government.

Should the government raise or lower taxes?

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Last updated: November 26, 2009: 08:44 AM

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