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June 18, 2010

Zero income tax

Nationwide 52 million households or 36 percent of all households who filed a federal income tax actually paid no federal income tax. Do we have any statistics that tell us just how many of these happy folks were in North Carolina?

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Before I answer your question let me emphasize two things. First of all, we are referring only to the federal income tax, not all taxes. So when we say so many people don't pay federal income tax, we don't necessarily mean they are not paying other taxes.

"And secondly, these are not people who cheat. These are folks who legitimately pay no federal income tax because they had enough credits or deductions.

"Now to specifically answer your question, the latest data we have for 2008 show that 1.6 million households that filed federal income taxes in North Carolina paid no federal income taxes. And that amounts to 38 percent of all filers, so it is slightly above the 36 percent rate for the nation.

"And indeed as with many, many economic statistics, this puts North Carolina right about average, right in the middle in terms of this very interesting number."

Posted by deeshore at June 18, 2010 10:23 AM

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