07-31-2009, 08:28 AM
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The People's Post
Industry Role:
Join Date: Dec 2008
Location: invisible 7-11
Posts: 64,685
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a lot more people than the top 1%ers get big refunds
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From other IRS preliminary data, we can see that in 2007, around 47 million tax returns were filed with either positive or negative AGI that used exemptions, deductions and tax credits to completely wipe out their federal income tax liability. Not only did they get back every dollar that the federal government withheld from their paychecks during 2007, but some even received more back from the IRS. This is a result of refundable tax credits like the Earned Income Tax Credit, the refundable portion of which is not included in the aggregate percentile data here. EITC is Congress's way of using the tax code to simply administer a transfer system, while doing it in a way that some economists prefer, via a negative income tax.
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