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Don’t fret, you’re not the only American running from the IRS.
A new report from the Tax Policy Center uncovered that a large segment of the U.S. population didn’t pay taxes in 2020. According to estimates, nearly 61 percent of Americans reportedly paid close to zero in federal income taxes.
CNBC’s financial analyst Robert Frank stated that the recent bump in households paying close to nil in federal income taxes was a result of the mass financial exemptions and aid provided to assist Americans during the national lockdowns of 2020.
Per the CNBC report: “The top 20% of taxpayers paid 78% of federal income taxes in 2020, up from 68% in 2019. The top 1% of taxpayers paid 28% of taxes in 2020, up from 25% in 2019.”
In 2018, the reported total of Americans who didn’t pay taxes was near 44 percent.
With over 100 million of U.S. households foregoing their fees, or receiving exemption as part of the COVID-19 pandemic aid, the record highs in unpaid taxes are clearly unsustainable.
As the national debt surges closer to $30 trillion, following waves of COVID-related spending, the United States continues to face a long-term battle against an economic structure proposed by Democrats.
With a rise in inflation, sticker shock and expected tax hikes on the way, the Biden administration’s willingness to drive a gas-guzzling Hummer of a spending plan, sucking up unleaded at five dollars a gallon, may end up as yet another monumental failure once the needle hits E.
Follow along on Twitter: @AlejandroAveela