On Wednesday, Brit Hume discussed the percentage of American households that do not pay federal income tax during a segment on Fox News. Following the early Tuesday morning Senate approval of President Donald Trump’s significant bill with a tight vote of 51-50, Hume appeared on “Special Report with Bret Baier” to talk about the implications of income tax cuts.
Hume noted that income tax cuts primarily benefit those who actually pay federal income tax. “Currently, around 40% of US households don’t pay federal income tax,” he mentioned. While these households contribute through social security, local taxes, and other means, they are exempt from federal income tax responsibilities.
“They still pay social security taxes, local taxes, and property taxes, but when it comes to federal income tax, they don’t contribute. It’s quite challenging to craft tax cuts that will benefit those who are not paying taxes,” Hume remarked. He emphasized that, generally, tax cuts favor taxpayers, referencing that many citizens’ income includes tips or overtime that are not taxed in specific ways.
Hume explained that Republican tax cuts typically aim at income taxes, which ultimately benefit those who contribute to the federal tax system. Critics, however, argue that the recent cuts overlook significant concerns related to government spending.
“Democrats have long critiqued Republicans for supposedly trying to help the wealthy at the expense of the poor,” Hume added. He believes this bill doesn’t effectively address government spending, mainly because it doesn’t focus on discretionary spending. The only spending aspect that can be tackled in this settlement bill, according to him, involves qualifying spending.
Hume argued that this means addressing various government programs—something Republicans have attempted with Medicaid spending. But, as he mentioned, Democrats often warn that such actions could jeopardize healthcare for many, leading to dire consequences.
The legislation seeks to limit or eliminate benefits for those deemed ineligible, like illegal immigrants. Hume expressed concerns about misuse of the program and his belief that many receive benefits they’re not legally entitled to. “What this bill aims to do is narrow down benefits for ineligible individuals, due to a growing concern over program abuse,” he explained. “These details are critical for understanding the bill.”
A report from the Tax Policy Center indicates that about 40% of American households—around 76 million tax units—will not be liable for federal income tax by 2025. Most of these households earn less than $75,000 annually, often benefiting from refundable tax credits, such as the earned income tax credit and child tax credit, which can actually reduce their tax liability to below zero.
The Senate has made significant adjustments to the comprehensive bill, including a reduction of the Local Hospital Fund to $25 billion and the removal of a contentious excise tax associated with the Green Energy Clause. New tax credits for non-profit contributions to educational institutions have also been introduced, featuring a real estate investment trust (REIT) for Arizona Senator Mark Kelly, alongside an official removal of the initial title, “One Big Beautiful Bill Act,” originally assigned by Trump.
