Washington, DC – Ways and Means Ranking Member Dave Camp (R-MI) issued the following statement after the non-partisan Joint Committee on Taxation issued an analysis showing that close to 50% of all Americans will pay no income taxes under President Obama’s proposed tax policies:
“The day after millions of Americans who are already strapped for cash but nonetheless filed and paid their federal taxes, we learn the President plans to use billions of those tax dollars to give tax ‘cuts’ to people who pay nothing into the system.”
1. Under President Obama’s budget, in 2012, 49% of families in America will pay no income tax. This runs counter to the notion that everyone in America should have some “skin in the game.”
2. Over the course of the ten-year budget window, the number of people paying no income taxes AND no FICA taxes (payroll taxes for Social Security and Medicare) jumps by 40%, or 4.4 million filers.
3. While over 90% of families would pay at least some income or FICA tax, the “rebate” that the non-taxpayers would receive increases by over 230%, or more than $22 billion by 2019. On a per family basis, these payments rise by about $1,000, meaning other Americans pay more of their hard-earned income to the IRS to fund these checks.