Public sentiment regarding taxation in the United States reflects a complex interplay of fairness, complexity, and government spending priorities. Insights from recent surveys from Pew Research Centre shed light on American attitudes towards taxation and its impact on individuals and society.
FAIRNESS IN TAXATION: CORPORATE AND WEALTHY CONTRIBUTIONS
A majority of Americans express concern over the perceived lack of contribution from corporations and wealthy individuals in taxes. About six-in-ten adults are bothered by the feeling that some corporations (61%) and wealthy people (60%) do not pay their fair share. Democrats are particularly critical, with significantly higher levels of concern compared to Republicans.
Support for raising tax rates on large businesses and households earning over $400,000 annually is also widespread, albeit with partisan differences in levels of endorsement.
PERSONAL TAX BURDEN: RISING SENTIMENTS OF INEQUITY
Growing numbers of Americans feel they personally pay more than their fair share in taxes, reflecting a trend towards increased dissatisfaction with the tax system. While Republicans are more likely than Democrats to perceive inequity in their tax contributions, the sentiment has risen across party lines since 2021.
COMPLEXITY OF THE TAX SYSTEM: A SOURCE OF FRUSTRATION
The complexity of the federal tax system is a significant source of frustration for many Americans. About half of adults express strong dissatisfaction with the intricacies of tax laws, with Republicans more likely than Democrats to find complexity bothersome.
PERCEPTIONS OF THE IRS: MIXED VIEWS
Public opinion of the Internal Revenue Service (IRS) is divided, with a slight majority holding an unfavourable view of the tax agency. Despite its critical role in revenue collection, the IRS ranks among the least popular federal agencies. Partisan differences exist, with Democrats offering more positive opinions of the IRS compared to Republicans.
FEDERAL SPENDING PRIORITIES: ALLOCATION OF TAX DOLLARS
An overview of federal government spending highlights the allocation of tax dollars towards social services, defence, debt repayment, and other functions. Human services receive the largest share of federal spending, followed by defence and debt interest repayment.
E-FILING TRENDS: MODERNIZING TAX FILING PRACTICES
The majority of Americans opt for electronic filing of their taxes, reflecting a significant shift towards digital tax preparation methods over the years. E-filing has become increasingly popular since the early 2000s, demonstrating a trend towards modernization in tax filing practices.
