Almost half of Americans pay nothing on Tax Day

Tax Day is upon us on April 18, 2011. A lot of people dutifully fulfill their obligations to the government concerning their taxes. Income taxes are not parted with gleefully. However, the legal obligation to file a tax return isn’t diminished by resenting it. Tax Day is certainly resented by the individuals who have to write the government a check on tax day, but the nearly 50 percent who don’t might be fine with it. Post resource – Tax day – Nearly half of Americans owe nothing by MoneyBlogNewz.

Little over half of Americans pay taxes on income

Tax Day 2011 falls on April 18 instead of April 15. This year nearly 45 percent of households will not have to pay any taxes on their 2010 income, according to Bloomberg. Low-income households receive exemptions and deductions, for instance the Earned Income Credit and the Making Work Pay Credit. Anyone that makes hardly any money or lives on fixed incomes such as disability or Social Security won’t pay any income taxes. If you don’t make much and have kids, you most likely will not pay taxes either. This is generally the case. The average tax refund, according to CNN, was $3,003 last year.

Wealthy paying less

Daily Finance states that there has been a decrease for everyone in taxes. Even the wealthy have been paying less. In 2007, 17 percent of income was paid by 300 highest income returns which were 26 percent in 1992. The wealthiest 5 percent account for 44 percent of the nation’s tax revenue while the top 10 percent is more than half of it. The tax breaks for the rich are becoming more readily available as well. Each year, $8,000 could be given to every taxpayer with the over $1 trillion in tax breaks in the U.S. tax code. It is a bad idea to try and trick the Internal Revenue Service though. USA Today states that now, there are more charges than ever the IRS wants to put out.

Developed countries typically pay more in taxes than Americans

In the United States, most people like to avoid and protest paying taxes. Nevertheless, as MSNBC points out, Americans pay less in taxes than the rest of the developed world does. Taxes are reviewed by the OECD, or Organization for Economic Co-operation and Development. This group keeps developed world tax information maintained. In The United States, a 24 percent tax on income is common while it is at 27 percent in Australia, 37 percent in Germany, 42 percent in France and 48 percent in Danes, states the OECD.

Citations

Bloomberg

bloomberg.com/news/2011-04-18/nonpayers-complicate-republican-effort-at-overhaul-of-u-s-tax-code.html

CNN

money.cnn.com/2011/01/14/pf/taxes/tax_refund/index.htm

Daily Finance

dailyfinance.com/2011/04/18/super-rich-see-federal-taxes-drop-dramatically/

USA Today

usatoday.com/money/perfi/taxes/2011-04-17-Prosecutions-of-tax-evaders-up.htm

MSNBC

msnbc.msn.com/id/42612937/ns/business-tax_tactics