Most people think they pay too much to Uncle Sam, but for some people it simply is not true.
In 2009, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center.
Some in that group will even get additional money from the government because they qualify for refundable tax breaks.
The ranks of those whose major federal tax burdens net out at zero — or less — is on the rise. The center’s original 2009 estimate was 38%. That was before enactment in February of the $787 billion economic recovery package, which included a host of new or expanded tax breaks.
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“As the number [of nonpayers] becomes larger, we have to question whether we’ll make good decisions about how to allocate resources,” economist George Zodrow, a professor at Rice University. “Most people don’t understand how skewed the tax distribution is.”
Experts say that to pay for all the things on the country’s growing tab, the money can’t just come from a shrunken pool of taxpayers.
“Over the long run, you’ll have to have a broader base,” Zodrow said.
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