Record number of taxpayers pay no income tax

A growing percentage of taxpayers owe nothing in income taxes after accounting for credits and deductions.

A recent report by the Tax Foundation, Putting a Face on American’s Tax Returns, shows that a growing percentage of taxpayers owe nothing in income taxes after accounting for credits and deductions.

In summarizing the data, the report notes:

Recent IRS data reveal that in 2010, over 58 million federal income tax filers had no income tax liability after taking deductions and credits. This amounts to nearly 41% of the roughly 143 million tax returns filed that year. This is the second highest percentage of nonpayers since 1940, behind only 2009, when nearly 42% of income tax filers were nonpayers. By contrast, the low point in the modern era for nonpayers was 1969, when only 16% of filers had no income tax liability. As recently as 2000, 25.2% of filers paid no income taxes.

It’s no wonder that fewer people are paying taxes ? an ever-growing government with massive programs is crowding out job creators. Illinois is no different ? except that its model is killing jobs even faster. Gov. Pat Quinn’s out-of-control spending and big government programs have led to a March unemployment rate of 9.5 percent, nearly two percentage points higher than the national average. It?s pretty simple: fewer jobs and opportunities mean fewer people to pay taxes.