THE LIFECYCLE OF THE 47 PERCENT

News that 47 percent of Americans in 2009 paid no federal income tax drew considerable attention. For a longer view of not paying tax and of receiving transfers, we use the Panel Survey of Income Dynamics. Over all individuals, we find that 68 percent owe no income tax at least one year, of which 21...

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Bibliographic Details
Published in:National tax journal 2019-06, Vol.72 (2), p.359-396
Main Authors: Fullerton, Don, Rao, Nirupama L.
Format: Article
Language:English
Subjects:
Fiscal policy
Income taxes
News
Social security
Taxation
Taxpayers
Transfers
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Summary:News that 47 percent of Americans in 2009 paid no federal income tax drew considerable attention. For a longer view of not paying tax and of receiving transfers, we use the Panel Survey of Income Dynamics. Over all individuals, we find that 68 percent owe no income tax at least one year, of which 21 percent pay the following year and 45 percent pay within five years. Also, overall, 60 percent receive transfers other than Social Security at least one year, of which nearly 47 percent stop the next year and more than 94 percent stop within 10 years.
ISSN:0028-0283
1944-7477
DOI:10.17310/ntj.2019.2.03