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Saturday, April 14, 2012

Taxes—Who Really Is Paying Up - WSJ.com

Taxes—Who Really Is Paying Up - WSJ.com: "What about those 46% who don't pay federal income tax?

Roberton Williams, a senior fellow at the Tax Policy Center, says 23% of U.S. taxpayers don't make enough money to owe that tax once they take their personal exemption and standard deduction. Another 23% qualify for tax breaks that bring their bill to zero or provide a refund.

"They start off with relatively low income to begin with," Mr. Williams says, "and therefore have low tax liability before claiming any breaks."

Wealthier people face a tax rate as high as 35% on earnings, "but they get the biggest tax breaks," he says. "They start off with such a high tax that the biggest tax breaks don't bring them down to zero. They're benefiting hugely from tax breaks—much more than the poor people—but because they start off at the high level, their tax bills stay positive."

That said, 1,470 millionaires were among those who paid no federal income tax in 2009."



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