THE AMERICAN TAX NON-PAYER

In“Who Doesn't Pay Federal Taxes?”, a study by the Tax Policy Center, we are toldthat “46.4% of Households Paid No FederalIncome Tax for 2011”
Itthen points out - “But Nearly Two-Thirdsof Households That Paid No Income Tax Paid Payroll Taxes”.  That leaves 18.1% who pay neither income norpayroll tax. 
Ofthis 18.1% the study indicates that 10.3% represent the elderly and 6.9%represent “non-elderly” individuals with income under $20,000.
Theimplication here is that the problem of the “non-taxpayer” is not as bad as onewould think because, while almost half of all Americans either pay no federalincome tax or make a profit by filing a 1040 via refundable credits, many actuallydo pay federal tax in the form of FICA or payroll taxes (Social Security andMedicare), and only the elderly and the poor pay nothing.
ButI do not agree with this implication and do strongly feel it is a real problemthat almost half of Americans pay no federal income tax.
Inmy opinion, the FICA tax is not a tax. It is a contribution to a retirement plan (Social Security) and apayment for future health insurance (Medicare). 
Paymentsof Social Security “tax” allow the individual to collect a pension atretirement, and payments of Medicare “tax” allow the individual to receive extensivehealth care coverage at a very cheap rate (less than $100 per month) at age 65. 
Abig reason so many people do not pay any income tax, or make a profit fromtheir return, is because of the many social benefit programs and subsidies thatare run through the Tax Code, such as welfare (EIC) and tuition assistance. 
AsI continue to say -these payments and subsidies may be good, and beneficial tosociety, but they should be distributed as direct payments or subsidies via theappropriate governmental department budget, and not as tax deductions orcredits.
Doyou agree with my thinking?
TTFN