Breaking down the 47 percent

TERRE HAUTE, Ind. (WTHI) - Governor Mitt Romney underwent a certain amount of pushback after briefly mentioning that close to half the population now pays no federal income tax.   

Some see this as evidence of a welfare state not working well.   

Others think both rich and poor Americans have found a way to duck their taxes.

The truth is, 47 percent of Americans don't pay federal income tax.

That includes college students, people with disabilities, people 65 and older who don't have earnings, and working people who don't earn over a certain amount of money.

But it's the people that duck that tax that frustrate Lorri Opremchak.

“Well, I don’t think it’s fair. People that could get out and work and pay taxes,” said Opremchak.

Of those 47 percent that pay no federal income tax, they still pay the federal payroll tax.    

For the vast majority of wage earners, the payroll tax exceeds their federal income tax.   

The payroll tax is what funds social security and Medicare.

“It’s not as though they don’t pay taxes. So if you’re going to make the 47 percent argument, you have to be very, very precise. You have to say that 47 percent of the American income tax filing population owes no federal income tax after they’ve done their exemptions and credits,” said Dr. Robert Guell, Indiana State University economics professor.  

Dr. Guell said Governor Romney tried to make a point when talking about the 47 percent recently.

When 53 percent of the population pays for everything the federal government does, the people who aren't paying will view the provided services positively.

But the people who are paying will view the programs with a certain amount of skepticism.

“I don’t have a problem with people on disability. I don’t have a problem with those that are retired, but it’s not fair to the rest of us to support the ones that aren’t paying taxes. I don’t think that’s fair,” said Opremchak.