Tax day - Nearly half of Americans owe nothing

Tax Day, probably the most infamous date on the calendar to many people, falls upon April 18 this year. The legal obligation must be observed, in spite of the resentment toward paying an income tax. Tax Day is certainly resented by the individuals who have to write the government a check on tax day, however the nearly 50 percent who do not may be fine with it. Article source – 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 almost 45 percent of households will not have to pay any taxes on their 2010 income, according to Bloomberg. The Earned Income Credit and Making Work Pay Credit are examples of exemptions and deductions that are common in the low-income households. Anyone that makes hardly any money or lives on fixed incomes such as disability or Social Security will not pay any income taxes. If you do not make much and have kids, you probably 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

The tax burden for the wealthiest taxpayers, according to Daily Finance, has been falling for some time. 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 accessible also. In the United States tax code, there are over $1 trillion in tax breaks. That means $8,000 to every tax payer could be given as a refund. However, attempting to catch the Internal Revenue Service napping is not a good idea. USA Today reports that now, there are more charges than ever the IRS wants to put out.

Developed countries typically pay more in taxes than Americans

Though many people protest the U.S. tax system for myriad reasons, most technical literature reveals that Americans pay very little income tax in contrast to the rest of the developed world, according to MSNBC. The tax data for the developed world is kept by the OECD, or Organization for Economic Co-operation and Development. According to the OECD, income tax in the U.S. typically averages 24 percent. In Danes, it is 48 percent; in France it is 42 percent; in Germany it is 37 percent; and in Australia it is 27 percent.

Articles cited

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