(FOX BUSINESS) – More than half of U.S. households paid no federal income taxes in 2021, a temporary spike attributed to massive COVID-19 relief spending in the form of tax credits and stimulus payments.
A recent analysis from the nonpartisan Urban-Brookings Tax Policy Center estimated that 57% of Americans paid no taxes last year. While that's down slightly from last year's 60%, it marks a significant increase from the 44% recorded before the pandemic began.
"The number of households who paid no income tax last year truly was eye-popping," Tax Policy Center Senior Fellow Howard Gleckman wrote. "But keep in mind: It was only temporary."
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