TERRE HAUTE, Ind (WTHI) - There are three basic reasons why 47 percent of Americans aren't paying federal income taxes.
The first one is George Bush era tax issues. It reduced tax rates for low income Americans, and doubled child credit.
The second is the President Obama era tax issues. He implemented the stimulus package, making less people pay income tax.
The third is that the gap between the rich and poor has increased.
So how can we get more people to the place where they're able to contribute?
"The question of how you get more people contributing is the question of how you get more people earning more money. You need a more vigorous economy that employs more people, that gives more economical opportunities, so that they're not in the categories that become eligible for the earned income tax credit and these other benefits," said Dr. Robert Guell, Indiana State University professor.
Dr. Guell also thinks this could cause tension between taxpayers.
"Defense, food stamps, Section 8 housing, will be viewed very differently by people at different ends of the income scale because one group is contributing to those costs and another group is not," said Dr. Guell.
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