According to a recent article... The lowest 47% of americans don't pay taxes because they receive enough tax credit to wipe out the taxes owed. In some cases, the lowest of the low earners make a NICE profit. I knew a family that banked over $8000 in tax refund.
The information is misleading ... it only takes into account federal income tax. Low income people still pay their payroll taxes, sales tax, property tax, gas taxes, capital gains tax, taxes added to their phone bills, utilities, etc. Don't believe everything you read or hear without considering the source.
Some are - the ones who work maybe 300 hours for the year and claim EIC. But most aren't, and many would much prefer to work at a full time job - and many DO work full time but still don't make enough to pay tax. I know a family with 5 kids, oldest 11, dad makes a little over $20K working full time, mom is a SAHM (well, sure, with 5 kids!) - their refund was well over $8000, but I don't see them as free-loaders.
Why don't you try supporting 3 kids on a crap $9 an hour job, Sparky? See how well you do. That $8k in refundable credits keeps them off of the streets. Barely. Most of those freeloaders would sell their souls for a decent job with reasonable benefits. Those handouts as some would put it were a political trade-off to keep the minimum wage artificially low. Had it kept pace with inflation since 1966 (at $1.60 an hour) it would be between $14 and $15 an hour today. Interestingly, that's about what it takes to keep a family of four just slightly above the poverty level in most of the country. Businesses got lower costs and the taxpayers at large pay for it. Corporate welfare, anyone??
I did not read your link but what they are stating is that 47% of Americans have no tax liability. That does not mean the lowest income earners because anyone who works has to pay taxes. If they earn very little at first, no federal tax is withheld but if they continue working all year, that tax will be withheld. Logically, you cannot think 47% of Americans are not working, that they must be on welfare. That is not what this means. The 47% of Americans is some welfare people, also people living on Social Security, children too young to work and most particularly, high income individuals who pay little tax due to tax loopholes and corporations who have offshore operations and pay no tax in the U.S. A portion of the 47% are getting a lot of tax credits. Since Obama has come in, there are lots of new tax credits. Perhaps he has been too generous. To get an $8000 tax refund you must earn above $80,000 and be in a financial position to take advantage of tax credits. That mostly happens to upper income individuals, not low income. Low income means under $25,000 and eligible for welfare. What was the annual gross income of this family?
No; the 'free-loaders' are those who don't work at all.
