On Tuesday, The Tax Policy Center, a joint effort by the Urban Institute and the Brookings Institution, said the number of households that don’t pay federal income taxes fell to 45.3 percent. But that figure is still roughly 5 percentage points higher than the center’s 2013 estimate of 40.4 percent.
The uptick doesn’t mean more folks have moved off the tax rolls. Rather, the surge from 2013 is largely thanks to better data tracking tools, according to the Center’s Roberton Williams. “Those additional non-payers were there all the time — we just failed to count them,” he said in a blog post.
That said, the Center still projects that the percentage of non-payers will fall over time, just more gradually than previously thought.
“We now estimate that 40 percent of tax units won’t pay tax in 2025, higher than our previous projection of about one-third,” Williams said.
Full article: 77.5 Million Households Are Not Paying Federal Income Taxes (CNBC)