A new study shows that 47% of US households will pay no federal income taxes this year. This is the result of both lower income and rising tax credits and exemptions. A family of 4 making around $ 50,000 could avoid any federal tax liability provided there are two children under the age of 17.
For comparison in 1969 roughly 16% of households paid no taxes and in 1989 roughly 20% did not pay.
Certainly we cannot expect people with very tight budgets to pay taxes if they need the money to live off of. On the other hand when we reach a point that half of the people are not paying taxes then why would those people care what the tax rates are ?
It’s obviously a tough problem and one that I suspect will continue to grow in the future.