March 22, 2007
For immediate release
Media contact: Brian Phillips (202) 464-5102 or phillips@taxfoundation.org
WASHINGTON, D.C.-A new national survey commissioned by the Tax Foundation and conducted by Harris Interactive® shows a majority of U.S. adults think the federal tax system is very complex and the amount of federal tax they pay is too high.
An overwhelming 83 percent of U.S. adults believe the current federal income tax is somewhat or very complex. Nearly six in ten (58 percent) consider the amount of federal income tax they have to pay as too high. In addition, 78 percent believe the federal tax system needs major changes or a complete overhaul.
"Simplifying the tax code should be high on the list of Congressional priorities," says Tax Foundation President Scott Hodge. "Making the tax code easier to understand would go a long way to relieve problems such as the alternative minimum tax (AMT) and non-compliance."
Government Services and Spending
This year the study also examined people's ideas about the value of government services they received. An overwhelming majority (89 percent) believe the amount of services they use to be less than $10,000. The average amount given by respondents was $7,243.80.
"Most people greatly underestimate the cost of government services they receive," says Tax Foundation economist Andrew Chamberlain, who is co-authoring a forthcoming Tax Foundation report on government spending. "The majority of Americans report that they receive ‘poor' or ‘only fair' value for their tax dollars, so it's not surprising to see this number so low."
Estate Taxes, Gas Taxes Are Least Fair
At the federal level, estate taxes edged out income, payroll and other taxes to be labeled the least fair. On a scale from one to five, with five being the least fair, estate taxes were rated higher (3.9) than federal gas taxes (3.8), income taxes (3.5) and payroll taxes (3.3). Forty-two percent of U.S. adults believe estate taxes are "not at all fair."
The number of people who favor estate tax repeal was 66 percent in 2007, down slightly from 68 percent in 2006. Less than one in five opposes estate tax repeal.
At the state and local level, the least fair tax was the gas tax (3.8). It was followed closely by property taxes (3.6), motor vehicle taxes (3.5) and state income taxes (3.4).
Methodology
The survey was conducted online within the United States by Harris Interactive® on behalf of the Tax Foundation between March 5 and 12, 2007 among 2,012 adults (18 and older).. Figures for age, sex, race, education, household income, and region were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.
With a pure probability sample of 2,012, one could say with a 95 percent probability that the overall results would have a sampling error of +/- 2.2 percentage points. Sampling error for data based on sub-samples would be higher and would vary. However, that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.
About the Tax Foundation
The Tax Foundation has monitored tax policy at the federal, state and local levels since 1937. Best known for its annual calculation of Tax Freedom Day®, the Tax Foundation is a nonprofit, nonpartisan 501(c)(3) organization based in Washington , D.C.
About Harris Interactive®
Harris Interactive Inc. (www.harrisinteractive.com), based in Rochester, New York, is the 13th largest and the fastest-growing market research firm in the world, most widely known for The Harris Poll® and for its pioneering leadership in the online market research industry. Long recognized by its clients for delivering insights that enable confident business decisions, the Company blends the science of innovative research with the art of strategic consulting to deliver knowledge that leads to measurable and enduring value. Harris Interactive serves clients worldwide through its United States, Europe (www.harrisinteractive.com/europe) and Asia offices, its wholly-owned subsidiary Novatris in Paris, France (www.novatris.com), and through an independent global network of affiliate market research companies.
For more information about the 2007 Annual Survey of U.S. Attitudes on Tax and Wealth, please contact Brian Phillips (202) 464-5102 or phillips@taxfoundation.org. For questions about the polling methodology please contact Nancy Wong (585) 214-7316 of Harris Interactive.
# # #