Why Half of Us Don't Pay Income Tax

It's a provocative fact about the tax code: Nearly half of U.S. households end up owing no federal income tax.

But it's not surprising given the addiction to tax breaks by both Democrats and Republicans, and the fact that the U.S. tax code is set up to be progressive.

"There's nothing nefarious going on here," William Gale, co-director of the independent Tax Policy Center, said on a call with reporters Wednesday.

Intentionally or not, Congress set it up this way.

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