Taxes? What Taxes?

Source: EconLog
by Veronique de Rugy

“[I]n 2020, all of the income tax revenue was collected from only 40 percent of U.S. households. This is by design, and it is done by excluding households through a combination of personal exemptions, the standard deduction, zero bracket amounts, and tax credits. Since roughly 50 percent of federal revenue comes from individual income taxes, it means that a few households pay a big share of all federal taxes. The TPC estimates that the share of households paying no income tax will drop starting next year. However, these projections will not hold if President Biden extends or makes permanent many of the tax credits he plans.” (09/08/21)