There's a REEEEALY important part of this article which overshadows the entire thing:
The vast majority of people who escape federal income taxes still pay other taxes, including federal payroll taxes that fund Social Security and Medicare, and excise taxes on gasoline, aviation, alcohol and cigarettes. Many also pay state or local taxes on sales, income and property.
"Federal Income tax" is only a portion of the total tax liability of the taxpayer, even if you have zero exemptions (i.e. Single, 0 on your W2).
Example... this year, my State Tax return is going in the bank, so I can pay off my vehicle and property tax.... and I have 3 kids, a house, and medical bills up the wazzoo for a diabetic wife. (all of which are big time exemptions on your tax return)
So, when you add it all together, while 47% of Americans pay no federal taxes, 100% of Americans payout a significant portion of their income in taxes despite "exemptions, deductions" etc.
My bank account doesn't show that tax liability is someone else's problem.
P.S. My Federal return was used to buy groceries, clothes, and pay down some of the 10G in Credit Debit from having a 3k deductible on our health insurance for the past 3 years.
Edited by blackcatgrowl, 07 April 2010 - 04:38 PM.