April 14, 2005
Washington, D.C.—On the eve of the April 15 tax deadline, a new national survey commissioned by the Tax Foundation and conducted by Harris Interactive® shows that 59 percent of U.S. adults believe they pay more federal income tax as a percentage of income than billionaire Donald Trump. (Veiw full survey results and summary.)
“The poll results show a majority of Americans believe federal taxes are too high, complex, and they support tax simplification even if that means giving up deductions and exemptions,” said Tax Foundation President Scott A. Hodge.
An overwhelming 81 percent of adults believe the federal income tax is somewhat or very complex, and 70 percent said they either “hated” or “disliked” doing their income taxes. More than half (55%) say the amount of federal income tax they pay is too high.
Majority Support Tax Reform
With fundamental tax reform a centerpiece of the President’s domestic agenda—including a possible flat income tax or national retail sales tax—the survey asked respondents about their preferred method of collecting taxes. When asked to choose between a national sales tax, a flat-rate income tax with no deductions or the current income tax system, 37 percent of adults chose a flat tax, while 19 percent favored a national sales tax and 19 percent favored the status quo.
When asked if they favored replacing part of the income tax with a nationwide sales tax, just 34 percent favored it while 36 percent were opposed 1. When asked about a flat tax where everyone pays the same percentage of income over some minimum level, 54 percent favored the plan, while 21 percent opposed it 2.
Willing to Trade Deductions for Simpler Taxes
“Conventional wisdom is that deductions are a stumbling block for tax reform, as voters may be unwilling to give them up in exchange for a simpler tax code,” said Hodge. “These survey results challenge that belief.”
When asked if they are willing to give up some deductions to make the tax system simpler, a majority (54%) of adults said they would. Surprisingly, those most willing to trade deductions away for tax simplification are the same ones likely to benefit from deductions—respondents who are married, those over age 45, and those with incomes over $75,000 per year.
Support for Repeal of Estate Tax
“While divided on tax reform, Americans appear united in one respect—their dislike of the federal estate tax,” said Hodge. When asked about completely eliminating the estate tax, an overwhelming 68 percent of survey respondents favored elimination. Currently the estate tax is scheduled to be phased out in 2010 only to return in 2011 unless Congress takes action.
Other key results include:
Methodology
Harris Interactive ® conducted the online survey on behalf of the Tax Foundation within the United States between March 28 and April 1, 2005 among a nationwide cross section of 2,013 adults aged 18 and older. Figures for age, sex, race, education, region and household income 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. Though online samples are not probability samples, in theory, with samples of this size, Harris Interactive estimates with 95 percent certainty that the results have a sampling error of plus or minus 2.2 percentage points.
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), the 15 th largest and fastest-growing market research firm in the world, is a Rochester, N.Y.-based global research company that blends premier strategic consulting with innovative and efficient methods of investigation, analysis and application. Known for The Harris Poll ® and for pioneering Internet-based research methods, Harris Interactive conducts proprietary and public research to help its clients achieve clear, material and enduring results.
Harris Interactive combines its intellectual capital, databases and technology to advance market leadership through U.S. offices and wholly owned subsidiaries: London-based HI Europe (www.hieurope.com), Paris-based Novatris (www.novatris.com), Tokyo-based Harris Interactive Japan, through newly acquired WirthlinWorldwide, a Reston, Virginia-based research and consultancy firm ranked 25 th largest in the world, and through an independent global network of affiliate market research companies. EOE M/F/D/V
Notes:
1. An additional 26% of respondents said “not sure.”
2. An additional 30% of respondents said “not sure.”
3. An additional 30% said taxes and services should be kept the way they are and 23% were not sure.
Media Contact: William Ahern (202) 464-5101
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Chart 1: "Which of the following statements best describes your opinion of the federal tax system?"
Chart 2: "Do you consider the amount of federal income tax you have to pay as too high, too low, or about right?"
Chart 3: "How would you rate the value you personally get from the taxes you pay to the federal government?"
Chart 4: "All things considered, who do you think pays more in federal income taxes each year as a percentage of income, you or millionaire Donald Trump?"
Chart 5: "Of the following federal taxes, which do you think is the worst tax -- that is, the least fair?"
Chart 6: "Of the following state and local taxes, which do you think is the worst tax -- that is, the least fair?"
Chart 7: "If you could choose one plan to collect all federal taxes, of these listed, which federal tax plan would you prefer?"
Chart 8: "Would you be willing to give up some deductions to make the tax system simpler?"
