A new report estimates that more than half of U.S. households paid no federal income taxes in 2021, largely due to COVID-19-related funds and assistance.
The Tax Policy Center found that 57% of U.S. households paid no federal income taxes in 2021, up from 44% before the pandemic, as CNBC first reported. Howard Gleckman, senior fellow at the Tax Policy Center, told CNBC the drastic jump could be attributed to COVID-19-related job losses, lower incomes, stimulus checks and tax credits.
The expansion of the child tax credit, which is part of the $1.9 trillion stimulus bill signed by President BidenJoe BidenRussian rocket attacks left five people injured in the western Ukrainian city of Lviv. If we deregister the IRGC, what will the dictators think? Biden to propose minimum tax on billionaires in MORE budget in March 2021, also reduced income tax for many families, since it is a fully refundable tax credit. The expansion increased the number of households that received the credit and the amount per child.
However, Congress failed to pass the expanded child tax credit extension after Sen. Joe ManchinJoe ManchinBiden to Propose Minimum Tax on Billionaires in Sunday’s Emissions Budget Preview: US, Allies Step Up Pressure on Russia; Jackson undergoes confirmation hearings Energy and environment – Biden and European leaders announce energy plan MORE (DW.Va.) stopped the Build Back Better bill in December 2021. Gleckman told CNBC that because tax credits like these will likely end or shrink as the pandemic subsides, the number of non-payers will decrease.
The study also notes that most workers pay payroll taxes, so the share of Americans who pay neither payroll taxes nor federal income taxes was just 19% in 2021, down from 17% before the pandemic. .