Understanding Americans’ Perspectives on Federal Taxes
As the deadline for filing tax returns approaches, the IRS is gearing up for a busy season, anticipating over 160 million individual and business filings. A recent study by Pew Research Center has delved into the attitudes of Americans towards the federal tax system, revealing a mix of frustration and calls for fairness.
The research, which incorporates public opinion data and federal statistics, indicates a significant portion of Americans believe that corporations and the wealthy do not contribute their fair share to the tax coffers. This sentiment is particularly strong among Democrats, with around three-quarters expressing substantial concern over the perceived imbalance.
Moreover, the notion of increasing tax rates on large businesses and high-income households garners support from roughly two-thirds of the population, with a partisan divide showing Democrats more inclined towards such measures.
Personal perceptions of tax fairness also play a role in the public discourse. Over half of U.S. adults feel they pay more than what is fair in relation to the benefits received from the government. This feeling has been on the rise since 2021, with Republicans more likely than Democrats to express this view.
The complexity of the tax system is another source of exasperation for many, with over half of Americans bothered by its intricacies. The Internal Revenue Code’s length, spanning thousands of pages, underscores this complexity and contributes to the widespread frustration.
Public opinion on the IRS itself is split, with just over half holding an unfavorable view. Party affiliation heavily influences these views, with Republicans generally less favorable towards the tax agency compared to Democrats.
In terms of revenue, individual income taxes remain the government’s largest source, expected to bring in about $2.5 trillion in fiscal year 2024. This starkly contrasts with corporate income taxes and excise taxes, which contribute far less to the federal budget.
Social services are the primary beneficiaries of federal spending, with human services such as education, health, and Social Security receiving the lion’s share. Meanwhile, defense spending and interest on government debt also command significant portions of the budget.
The convenience of technology has led to a surge in e-filing, with an overwhelming majority of Americans now submitting their federal taxes electronically. This trend has seen a dramatic increase since the early 2000s, reflecting the shift towards digital solutions in tax administration.
