40 Percent of Households Paid Negative Taxes in 2010

Tuesday, 10 Dec 2013 11:11 AM

By Drew MacKenzie

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
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.

In other words, taxpayers in the top 40 percent of households paid more than 100 percent of net federal income taxes in 2010 because Americans in the bottom 40 percent actually paid negative income taxes by the time their tax breaks and other benefits were figured in.

The CBO study also showed that the top 20 percent of income earners paid a staggering 92.9 percent of net income tax revenues in 2010.

The study said that the benefits, or "government transfers" as the CBO called them, to the lowest-earning households included unemployment insurance, Medicare and Social Security, Medicaid and food stamps.

Related Stories:
 

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Wisconsin Supreme Court Upholds State's Voter ID Law

Thursday, 31 Jul 2014 09:09 AM

The Wisconsin Supreme Court upheld a state law on Thursday requiring voters to have identification to cast a ballot, acc . . .

Jobless Aid Applications Rise to 302,000

Thursday, 31 Jul 2014 08:48 AM

More people sought U.S. unemployment benefits last week, but jobless claims remain at pre-recession levels. . . .

Family Members of Victims Want Boehner to Come to Border

Thursday, 31 Jul 2014 08:47 AM

More than a dozen family members of crime victims of illegal aliens penned a letter to House Speaker John Boehner Wednes . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved