Here's a look at who doesn't pay, and why.
Question: So the reports that half the U.S. doesn't pay taxes are true?
Answer: No, they're not. According to the nonpartisan Tax Policy Center in Washington, D.C., 46% of tax filers will owe no federal income tax this year. But when you figure in payroll taxes — such as those for Social Security, Medicare and unemployment — more than 80% of tax filers pay some kind of federal tax. And that doesn't include sales taxes, state taxes, local taxes, gas taxes, etc., which catch just about everyone.
Q: But almost half the filers don't pay federal income tax. How come?
A: It's because of the way the tax code is written. In 2010, a married couple filing jointly didn't have to pay any income taxes if their income was less than $18,700; couples older than 65, if their income was $20,900 or less. And even if you make more than that, the standard deduction — which goes up each year — and a myriad of other deductions and tax breaks reduce income tax exposure. In 2009, the most recent year for which Internal Revenue Service data is available, filers with adjusted gross income of less than $30,000 made up 83% of all the nontaxable returns. According to the Tax Policy Center's calculator, a couple with two kids younger than 13 that makes $30,000 would get $5,000 back under current laws.