The Truth about People Who Don’t Pay Taxes

Though some Americans do not pay taxes, it is not at the rate some have led taxpayers to believe. Roughly 47 percent of Americans do not pay taxes, but there are legitimate reasons behind it, with the most obvious being that they do not earn enough income to file.

Republicans on State and Federal Aid Programs

It is reported that republican Americans are more likely to be on government assistance programs like food stamps and Social Security. Individuals receiving Social Security, either traditional or disability benefits, do not pay taxes. Those on food stamp programs typically do not earn enough to file a tax return.

Those who are on state aid programs do not stay there forever, in most cases. Once those Americans obtain higher paying jobs or second incomes, they start filing tax returns and paying taxes.

Students and Retirees

Students and retirees typically don’t have enough income to tax. Retirees who are on fixed incomes without investments, additional sources of income, annuities, or retirement plans are not taxed. Now, if retirees do have significant income from multiple streams of income, they must file a tax return as taxes are due on disbursement payments from individual retirement accounts, annuities, and taxes are due on capital gains.

Final Thoughts

There are wealthy Americans across all political parties who avoid paying taxes because they’ll have to pay a large amount. There are also cases where wealthy individuals obtain their wealth from illegal or quasi-legal practices, meaning that they could end up in huge financial trouble and under investigation by the IRS.

Image credit: Philip Taylor