Why are Americans not paying federal tax?

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Why are Americans not paying federal tax?

• The COVID-19 pandemic has jacked up the number of nontaxpayers in the US. In 2020, 61% of American taxpayers did not pay federal income tax in the US, reveals a new study.

• According to the Tax Policy Center estimates, last year nearly 107 million households of the 176.2 million households – 60.7% of total taxpayers fell into that bracket that either owed no income tax or received tax credits from the government.

• For 2021, Congress upped the size of the child tax credit, the earned income tax credit, and the child and the dependent care tax credit — all of which erased the federal taxes owed for millions of American families.

• In 2019, the number stood at 76 million households, representing 44% of all taxpayers. The Tax Policy Centre, officially the Urban-Brookings Tax Policy Center, is a nonpartisan think tank based in Washington DC.


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