12 Facts About Taxes And Americans
As spring rolls around, it’s that time of the year again when folks across the States dive into a frenzy of crunching numbers and filling out forms to get their taxes sorted. This season, the IRS is gearing up to file over 160 million individual and business tax returns. This article explores Americans’ opinions on taxes.
With Tax Day looming on April 15, here are 12 tidbits about America’s federal taxes. This data is sourced from Pew Research Center and an analysis of federal data. Pew is one of the most prominent and reputable research organizations.
Perceptions Of Fairness
According to Pew Research, a majority of Americans believe that corporations and wealthy individuals do not pay their fair share in taxes. Democrats are more likely than Republicans to believe this.
Personal Tax Burden
Slightly over half of U.S. adults feel they personally pay more than what is fair, considering what they receive from the federal government. This sentiment has become more widespread in recent years, increasing from 49% in 2021 to 56%.
Partisan Divide
Republicans are more likely than Democrats to say they pay more than their fair share in taxes. Only 8% of Americans believe they pay less than their fair share. Opinions on taxes can vary significantly based on things like income, marital status, and other factors.
Complexity Of The Tax System
Many Americans find the federal tax system complex, with about half expressing frustration regarding its complexity. Republicans are bothered more by this than democrats.
Tax The Rich?
Approximately two-thirds of Americans support raising taxes on large businesses and corporations, as well as on households with annual incomes over $400,000. Democrats are more likely to favor these policies than Republicans.
Support For Tax Increases
A poll found that 60% of respondents oppose raising federal taxes, while 40% favor the idea. Specifically regarding income taxes, 66% of respondents are opposed to raising them. This is compared to 34% who favor this policy.
Support For IRS
51% of Americans expressed disapproval of the IRS. In contrast, 42% view the IRS in a positive light. Out of all the government agencies, the IRS is the least liked.
Length Of The Tax Code
The printed 2022 edition of the Internal Revenue Code spans a whopping 4,192 pages. Income tax law accounts for over half of those pages.
Changes To Code
The Internal Revenue Code (IRC) is huge, it’s almost four million words. Since 2004, the tax code has had around 4,107 changes, amounting to an average of over one change every day.
E-filing Trends
According to IRS data, the vast majority of Americans now e-file their taxes. 97% of returns were e-filed in 2023, to be exact.
Federal Spending Allocation
A separate study found that 13% of federal spending ($888.6 billion) goes toward repaying net interest on government debt. The remaining funds cover a wide array of functions, including infrastructure, energy, transportation, and agriculture.
When Did Income Tax Start In America?
Income tax was first introduced in America with the Revenue Act of 1861 in order to finance the Civil War. Initially, it applied to individuals earning over $800 annually at a rate of 3%. However, it was later repealed and reinstated multiple times before the 16th Amendment to the Constitution in 1913 made it permanent.
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