Now meet the Freeloading Fifteen. Those are the 15 million American households who've got it even better. Representing about 10 percent of all taxpayers, they receive more cash from the IRS than they contribute in federal income taxes andemployment taxes. (Excise and corporate taxes notwithstanding, you could say they are making money off of federal taxes.) To some, they are low-income Americans benefiting from smart and targeted welfare run through the tax code. To others, they are unacceptable free riders, contributing net zero or worse to the federal government.
Why? As National Journal's Peter Cohn explained it in a great article: The IRS as 'Sugar Daddy,' if we hate the system, we only have Congress and voters to blame. In the last 40 years, Washington has passed a series of laws, such as the Earned Income Tax Credit and the child tax credit, that send money to lower- and middle-income families through the tax system. Republican presidents started and expanded some of these credits. Democratic presidents have started and expanded some of these credits. No party exclusively owns or disowns the Freeloading 15 million. LINK