The U.S. income tax system is “very progressive,” and it’s increasingly taking on the role of providing social benefits to households, according to the Tax Foundation. Lower household income and tax relief measures introduced during the pandemic allowed more Americans to pay no taxes in 2020. And President Joe Biden’s Build Back Better plan aims to extend these measures, making the tax system even more progressive, Garrett Watson, senior policy analyst at the Tax Foundation, wrote in a report. The share of tax filers who pay income taxes dropped last year because of several federal relief measures, including the expansions in the child tax credit (CTC) and earned income tax credit (EITC). According to preliminary estimates from the Urban–Brookings Tax Policy Center released last week, nearly 61 percent of U.S. households paid no federal income taxes in 2020, up from 44 percent in 2019. The data show that out of 176.2 …
Read More
RSS Feed | The Epoch Times
