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In her September 30, 2009 article, "47% will pay no federal income tax," Jeanne Sahadi, CNNMoney.com senior writer concludes that:

"An increasing number of households end up owing nothing in major federal taxes, but the situation may not be sustainable over the long run."

Key excerpts from the article are below:

- "In 2009, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center."

- "The ranks of those whose major federal tax burdens net out at zero -- or less -- is on the rise. The center's original 2009 estimate was 38%. That was before enactment in February of the $787 billion economic recovery package, which included a host of new or expanded tax breaks."

- "The vast majority of households making up to $30,000 fall into the category, as do nearly half of all households making between $30,000 and $40,000."

- "Nearly 22% of those making between $50,000 and $75,000 end up with no federal income tax liability or negative liability as do 9% of households with incomes between $75,000 and $100,000."

While these statistics invariably result in a debate over the use and structure of the current progressive income tax system, I believe we are all missing the point - and the writing is on the wall:

No amount of money paid by any percentage of any taxpayer bracket will ever be able to keep up with Uncle Sam's uncontrollable spending fetish [Note: I'm using the word "fetish" as defined in Webster's New World College Dictionary as "Any object believed by some person or group to have magic power"].

Despite how difficult it will be, and how much pain and suffering it will cause, Uncle Sam is destined to engineer the financial collapse of the greatest nation on earth. He'll never stop spending money he doesn't have and, sooner or late, it's going to catch up with him.

You can bet on it.

- Ed Smith, Publisher
The EHS Letter Manual