The bottom 40 percent of households paid minus 9.1 percent in taxes while receiving nearly $19,000 on average in government benefits in 2010, according to a new study by the Congressional Budget Office.
On the other hand, the top 40 percent of households paid 106.2 percent of the nation's net income taxes in 2010, according to the CBO study entitled The Distribution of Household Income and Federal Taxes 2010.
"When refundable tax credits, such as the earned income tax credit and the child tax credit, exceed the other federal tax liabilities of the households in an income group, those households are said to have a negative average tax rate,” said the CBO study.
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If the tax codes made these rates ZERO, the rest of us that actually contribute to the country (pay taxes) could pay less...or heaven forbid, allow the government to use that 'found' revenue stream to fund a bunch of politicians pet projects (giving money to their donors).
ReplyDeleteOne of the loopholes they should fix immediately!
I bet that 40% are the ones Mitt Romney referred to.
ReplyDelete