Kip Brisbois
Membership Revoked
Many won't get tax refund checks, study shows
More than 35 million people who earn income and file a tax return will receive nothing
Glenn Kessler - Washington Post
WASHINGTON _ For millions of Americans, the check's not in the mail.
Since Congress passed President Bush's tax plan last week, news reports have focused on one of its most striking features -- a late-summer mailing of rebate checks to 95 million taxpayers. But a study released Wednesday suggested that millions of Americans will get little or nothing.
Citizens for Tax Justice, a nonprofit research organization with the only nongovernmental computer model able to calculate the distribution of taxes, reported that almost half of those Americans in the bottom 60 percent of income earners -- more than 32 million individuals and families -- will receive no rebates. Nearly 35 million Americans who earn income and file a tax return will receive nothing, the group said.
"The people who are excited about this rebate aren't going to get it," said Robert McIntyre, director of the group, citing news stories for which poor workers and students are interviewed about what they would do with the checks. "And the people who aren't excited about it are going to get it."
How is this possible? About one-third of income earners pay little or no income taxes -- after exemptions, deduction and credits -- though they may pay substantial payroll taxes or sales taxes.
A single person will receive $300 if he or she has at least $6,000 in annual taxable income, while a couple will get $600 if they have at least $12,000 in taxable income. But taxable income is very different from income. For instance, a family of four would be able to deduct at least $18,500 in standard deductions and personal exemptions from their income before they pay income taxes, so they would need to earn at least $30,000 to get close to a $600 rebate.
According to Citizens for Tax Justice, 26 percent of married couples earning between $27,000 and $44,000 would receive no rebate. Among couples who qualify for a rebate in that group, the middle 20 percent of taxpayers, the average rebate would be $479.
Virtually everyone in the top 20 percent of taxpayers -- who pay about 80 percent of income taxes -- will receive a rebate, and generally the full amount, the study said.
Asked about the Citizens for Tax Justice study, Michele Davis, a Treasury Department spokeswoman, said: "We have a single statistic: One hundred percent of the people with income tax liability will receive a rebate."
McIntyre said "that is a fair statement," but it simply confirms that people at the bottom of the income ladder will not receive rebates.
Treasury Secretary Paul H. O'Neill said Wednesday that he hopes the government can accelerate the delivery of rebate checks, scheduled to begin in late July.
More than 35 million people who earn income and file a tax return will receive nothing
Glenn Kessler - Washington Post
WASHINGTON _ For millions of Americans, the check's not in the mail.
Since Congress passed President Bush's tax plan last week, news reports have focused on one of its most striking features -- a late-summer mailing of rebate checks to 95 million taxpayers. But a study released Wednesday suggested that millions of Americans will get little or nothing.
Citizens for Tax Justice, a nonprofit research organization with the only nongovernmental computer model able to calculate the distribution of taxes, reported that almost half of those Americans in the bottom 60 percent of income earners -- more than 32 million individuals and families -- will receive no rebates. Nearly 35 million Americans who earn income and file a tax return will receive nothing, the group said.
"The people who are excited about this rebate aren't going to get it," said Robert McIntyre, director of the group, citing news stories for which poor workers and students are interviewed about what they would do with the checks. "And the people who aren't excited about it are going to get it."
How is this possible? About one-third of income earners pay little or no income taxes -- after exemptions, deduction and credits -- though they may pay substantial payroll taxes or sales taxes.
A single person will receive $300 if he or she has at least $6,000 in annual taxable income, while a couple will get $600 if they have at least $12,000 in taxable income. But taxable income is very different from income. For instance, a family of four would be able to deduct at least $18,500 in standard deductions and personal exemptions from their income before they pay income taxes, so they would need to earn at least $30,000 to get close to a $600 rebate.
According to Citizens for Tax Justice, 26 percent of married couples earning between $27,000 and $44,000 would receive no rebate. Among couples who qualify for a rebate in that group, the middle 20 percent of taxpayers, the average rebate would be $479.
Virtually everyone in the top 20 percent of taxpayers -- who pay about 80 percent of income taxes -- will receive a rebate, and generally the full amount, the study said.
Asked about the Citizens for Tax Justice study, Michele Davis, a Treasury Department spokeswoman, said: "We have a single statistic: One hundred percent of the people with income tax liability will receive a rebate."
McIntyre said "that is a fair statement," but it simply confirms that people at the bottom of the income ladder will not receive rebates.
Treasury Secretary Paul H. O'Neill said Wednesday that he hopes the government can accelerate the delivery of rebate checks, scheduled to begin in late July.