According to a new report by the Tax Policy Center, the percentage of American households that don't pay any federal income tax has fallen from 47 percent to 43 percent.
This may be because people's incomes have started to increase, which also increased their tax bill (video below).
If this trend continues, the Tax Policy Center predicts that by 2024 about 33 percent of households won't be paying income taxes.
In 2009, the Tax Policy Center said the percentage of non-paying federal income tax households was 47 percent, whom GOP presidential nominee Mitt Romney criticized in 2012 as being dependent on the government.
While conservatives seize on these numbers and often repeat them to attack the poor and defend the wealthy, what is not included in their rhetoric is how these same households pay payroll taxes (which the wealthy do not pay) Medicare and Social Security, state income taxes, sales taxes and other local taxes.
According to the Tax Policy Center, of the 43 percent that do not pay federal income taxes, 29 percent include people who are working, but may not pay because they have deductions such as the Earned Income Tax Credit for children.
Also, 10 percent are older Americans who aren't paying federal income taxes because they only have Social Security.
There are 3 percent of Americans are making less than $20,000 a year and don't pay federal income tax because their income is too low.
There is also a special class of non-taxpayers who are already paying foreign taxes.
Of course, there are also wealthy people earning over $200, 000 who find enough deductions to write off their tax bill.