Gallup's Pulse of Democracy

Taxes and Tax Cuts

Guidance for Lawmakers

Americans think the amount of taxes they pay is too high, but at the same time support increased taxes on the upper class and on big business and corporations. Americans particularly resent local property taxes, which they view as more onerous than federal or state taxes. High taxes are not a pressing priority for Americans in terms of what they see as the most important problem facing the country or what they think the top focus for government should be.


Fine Print

When pollsters ask Americans whether they would favor or oppose cutting federal income taxes, Americans are quick to support that action because it will put more money in their pockets. But, when Americans are given options of cutting taxes or spending more on domestic issues such as education and Medicare, or holding down the federal budget deficit, Americans are less supportive of cutting taxes, and in many instances, would prefer to spend more money on domestic problems.


Context

On a personal level, more than half of Americans say the amount of money they pay in federal income taxes is too high. The percentage of Americans saying their taxes are too high is much lower now than it was prior to President George W. Bush's tax cuts passed in the first term of his administration.

On a broader level, most Americans say they are dissatisfied with the amount Americans pay in federal income taxes; only about 4 in 10 Americans are satisfied. Fifty-four percent of Americans say the amount people pay in federal income taxes should be decreased, while 36% say it should remain about the same. Few Americans support raising taxes.

A strong majority of Americans believe upper-income people and corporations pay too little in federal income taxes. Americans are more divided as to whether lower- or middle-income people pay their fair share or pay too much in taxes each year; few say these groups pay too little.

Federal income taxes, however, are not the worst tax Americans pay to the government. According to an April 4-7, 2005, survey, 42% of Americans say local property taxes are the worst tax, or most unfair tax. This is followed by federal income tax (20%), state sales tax (17%), federal Social Security taxes (10%), and state income tax (7%).


Urgency: Overall Importance as Political Issue

The issue of taxes and tax cuts is not overly important to the American public at this time.

Every month, Gallup asks Americans to name, in their own words, the most important problem facing the country and also the top priority for the president and Congress to deal with. Few Americans ever mention taxes in response to either question. And, only 5% of Americans in March 2007 mentioned taxes as the most important financial problem facing their families right now.

Gallup periodically asks Americans to rate the importance of issues facing the nation. Last summer, just one in three Americans said taxes were an extremely important issue to their vote for Congress, ranking near the bottom of the list of issues. Even when Bush brought the topic of taxes to the forefront of his agenda early in his administration, cutting federal income taxes ranked at or near the bottom of Americans' priorities for the government.


Impact on Bush, Politics

The issues of taxes and tax cuts will probably have little impact on the Bush legacy. When asked what the Bush presidency will be most remembered for, only 2% of Americans say tax cuts. Most Americans say Bush will be remembered for the Iraq war.

Gallup occasionally asks Americans whether they approve or disapprove of the way Bush is handling taxes. Bush's approval rating on taxes has averaged 55% over his administration. But, it should be noted that Gallup has not asked this question since 2005, when the president's overall ratings were much more positive than they have been in 2006 and 2007.

In regard to Bush's tax cut plan, Americans generally supported his plan to cut taxes and supported making those taxes cuts permanent, but were divided as to whether they were a good idea for the country in principle and also about their impact on the economy and families around the country. Americans also recognized that the tax cuts would lead to a higher budget deficit.


Key Subgroup Differences

Views of taxes and tax cuts do not vary sharply by different segments of the population, such as gender, age, or politics.

However, there are some more minor variations about the amount people are paying in taxes by household income:

  • Americans residing in higher-income households are more likely than those residing in lower-income households to say their federal income taxes are too high.
  • But, Americans at all income levels agree that their taxes are fair. Americans at different income levels also agree that they are dissatisfied with the amount people pay in taxes and that taxes should be decreased.

There are also variations among partisan groups as to whether different groups in the country pay their fair share of taxes:

Democrats are much more likely than Republicans to say lower-income people and middle-income people are paying too much in federal income taxes. Democrats also are more likely than Republicans to say upper-income people and corporations are paying too little in federal taxes.

Gallup did find sharp political variations about Bush's tax cut plan early in his administration. A majority of Republicans supported the president's tax cuts, while most Democrats opposed them.

Republicans and Democrats are roughly even in their views of their own personal income taxes and their overall satisfaction in the amount Americans pay in taxes.


The Bottom Line

Americans are generally dissatisfied with the amount people are paying in federal income taxes, and would support decreasing federal income taxes. While a slim majority of Americans consider their taxes too high, most feel their taxes are fair and have much more positive about the amount they are paying in recent years. Americans would support higher taxes on corporations and think upper-income people are not paying their fair share of taxes. Overall, the tax issue is not a dominant priority for the public, and at this point, there is no urgency to change tax policy.



Do you consider the amount of federal income tax you have to pay as too high, about right, or too low?

Too high

About right

Too low

No opinion

%

%

%

%

2008 Apr 6-9

52

42

2

4

2007 Apr 2-5

53

41

2

3

2006 Apr 10-13

48

44

2

5

2005 Apr 4-7

51

44

2

3

2004 Apr 5-8

50

43

3

4

2003 Apr 7-9

50

46

2

2

2003 Jan 10-12 ^

47

50

1

2

2001 Apr 6-8

65

31

1

3

2000 Apr 7-9

63

33

1

3

1999 Sep 10-14

68

28

1

3

1999 Jul 16-18

60

37

*

3

1999 Apr 6-7

65

29

2

4

1998 Apr 17-19

66

31

1

2

1997 Mar 24-26

58

38

1

3

1996 Apr 9-10

64

33

1

2

1994 Dec 16-18

66

30

1

3

1994 Apr 16-18

56

42

*

2

1993 Mar 29-31

55

41

2

2

1992 Mar 26-29

56

39

2

3

1991 Mar 28-30

55

37

2

6

1990 Mar 8-11

63

31

2

4

1985 Jun 7-10

63

32

1

4

1982 May 14-17

60

32

*

8

1973 Feb 16-19

65

28

1

6

1969 Mar 12-17

69

25

*

6

1967 Mar 9-14

58

38

1

3

1966 Feb 10-15

52

39

0

8

1964 Feb 28-Mar 5

56

35

1

9

1963 Jan 11-16

52

38

1

8

1962 Jun 28-Jul 3

63

32

1

4

1962 Feb 8-13

48

45

0

7

1961 Feb 10-15

46

45

1

8

1959 Mar 4-9

51

40

2

7

1957 Apr 6-11

61

31

*

8

1956 Feb 16-21

55

35

1

9

1953 Feb1-5

59

37

*

4

1952 Feb 9-14

71

26

*

3

1951 Feb 4-9

52

43

1

4

1950 Feb

57

40

0

3

1949 Mar

43

53

1

4

1948 Mar

57

38

1

4

1947 Nov

63

32

0

5

1947 Mar

54

40

0

6

* Less than 0.5%

^ Asked of a half sample

Do you regard the income tax which you will have to pay this year as fair?

Yes, fair

No, not fair

No opinion

%

%

%

2008 Apr 6-9

60

35

5

2007 Apr 2-5

60

37

3

2006 Apr 10-13

60

34

5

2005 Apr 4-7

61

34

5

2004 Apr 5-8

62

33

5

2003 Apr 7-9

64

33

3

2002 Apr 5-7

58

37

5

2001 Apr 6-8

51

46

3

1999 Apr 6-7

45

49

6

1997 Mar

51

43

6

1946 Nov

60

34

--

1946 Feb

62

38

--

1945 Mar

85

15

--

1944 Mar

87

13

--

1944 Feb

90

10

--

1943 Feb

85

15

--

As I read off some different groups, please tell me if you think they are paying their FAIR share in federal taxes, paying too MUCH or paying too LITTLE? First, how about -- [ITEMS A-C ROTATED, ITEM D READ LAST]?

A. Lower-income people

Fair share

Too much

Too little

No opinion

%

%

%

%

2008 Apr 6-9

32

51

13

4

2007 Apr 2-5

34

45

17

4

2006 Apr 10-13

36

46

12

6

2005 Apr 4-7

36

51

10

3

2004 Apr 5-8

35

49

12

4

2003 Apr 7-9

36

49

12

3

1999 Apr 6-7

34

51

11

4

1996 Apr 9-10

40

48

9

3

1994 Apr 16-18

43

42

12

3

1993 Mar 29-31

37

51

9

3

1992 Mar 26-29

32

57

8

3

B. Middle-income people

Fair share

Too much

Too little

No opinion

%

%

%

%

2008 Apr 6-9

50

43

4

3

2007 Apr 2-5

44

47

7

2

2006 Apr 10-13

50

43

5

3

2005 Apr 4-7

52

41

4

3

2004 Apr 5-8

47

46

4

3

2003 Apr 7-9

51

40

7

2

1999 Apr 6-7

35

59

4

2

1996 Apr 9-10

34

58

5

3

1994 Apr 16-18

39

57

3

1

1993 Mar 29-31

39

54

5

2

1992 Mar 26-29

36

57

5

2

C. Upper-income people

Fair share

Too much

Too little

No opinion

%

%

%

%

2008 Apr 6-9

24

9

63

4

2007 Apr 2-5

21

9

66

4

2006 Apr 10-13

21

8

67

4

2005 Apr 4-7

22

7

68

3

2004 Apr 5-8

24

9

63

4

2003 Apr 7-9

24

10

63

3

1999 Apr 6-7

19

10

66

5

1996 Apr 9-10

19

9

68

4

1994 Apr 16-18

20

10

68

2

1993 Mar 29-31

16

5

77

2

1992 Mar 26-29

16

4

77

3

D. Corporations

Fair share

Too much

Too little

No opinion

%

%

%

%

2008 Apr 6-9

15

6

73

6

2007 Apr 2-5

19

5

71

5

2006 Apr 10-13

18

5

70

7

2005 Apr 4-7

21

4

69

6

2004 Apr 5-8

19

5

69

7

As you may know, as part of the recently passed economic stimulus legislation, beginning in May most Americans will receive a tax rebate check of between $300 and $600 per individual taxpayer from the federal government.

If you receive a tax rebate, what will you do with that money -- [ROTATED: spend it, save or invest it, pay off bills (or) donate it to charity]?

Pay off
bills

Save or
invest it

Spend it

Donate it
to charity

No
opinion

2008 Apr 6-9

41%

29

24

1

4

Do you feel that the distribution of money and wealth in this country today is fair, or do you feel that the money and wealth in this country should be more evenly distributed among a larger percentage of the people?

Distribution
is fair

Should be
more evenly
distributed

No
opinion

%

%

%

2008 Apr 6-9

27

68

5

2007 Apr 2-5

29

66

5

2003 Jan 10-12

31

63

6

2000 Sep 11-13

38

56

6

1998 Apr 23-May 31

31

63

6

1996 Apr 25-28

33

62

5

1990 May 17-20

28

66

6

1984 Dec 7-10

31

60

9

People feel differently about how far a government should go. Here is a phrase which some people believe in and some don't. Do you think our government should or should not redistribute wealth by heavy taxes on the rich?

Yes, should

No, should not

No opinion

%

%

%

2008 Apr 6-9

51

43

5

2007 Apr 2-5

49

47

4

1998 Apr 23-May 31

45

51

4

1939 Mar ^

35

54

11

^ Roper for Fortune Magazine

Would you like to see the amount Americans pay in federal income taxes increased, decreased, or remain about the same?

Increased

Decreased

Remain
about
the same

Other
(vol.)

No
opinion

%

%

%

%

%

2008 Jan 4-6

9

55

34

1

1

2007 Jan 15-18

7

54

36

1

2

2006 Jan 9-12

7

55

35

1

1

2005 Jan 3-5

9

55

34

1

1

2004 Jan 12-15

9

55

35

1

*

2003 Jan 13-16

4

63

32

*

1

* Less than 0.5%

(vol.) = Volunteered response

Which would you prefer to happen when you file your annual income taxes with the IRS each year -- [ROTATED: get a refund because you paid more in taxes than you owed during the year, (or) basically break even because you paid about what you owed in taxes during the year]?

Get a
refund

Break
even

Pay taxes
(vol.)

Doesn't
apply/
don't file (vol.)

No
opinion

2007 Mar 2-4

45%

50

*

3

2

* Less than 0.5%

(vol.) = Volunteered response

(Asked of those who prefer to get a tax refund) Would you prefer -- [ROTATED: to get a larger refund because you paid a lot more in taxes during the year than you owed, (or) to get a smaller refund because you paid only a little more in taxes during the year than you owed]?

COMBINED RESPONSES -- BASED ON A FULL SAMPLE

2007 Mar 2-4

%

Prefer to get a refund

45

(Prefer a larger refund)

(24)

(Prefer a smaller refund)

(21)

Prefer to basically break even

50

Prefer to pay additional taxes (vol.)

*

Doesn't apply/don't file taxes (vol.)

3

No opinion

2

* Less than 0.5%

(vol.) = Volunteered response

(Asked of those who prefer to get a tax refund) What are some of the reasons why you prefer to receive a tax refund rather than breaking even? (OPEN-ENDED)

BASED ON 403 ADULTS WHO WOULD PREFER TO GET A TAX REFUND

2007 Mar 2-4

%

It's like getting a bonus/reward/nice to get extra money

39

Forced savings/not good at saving otherwise

17

To be safe/conservative/don't want to have to owe

11

Believe taxes are too high

11

Helps with paying the bills

5

Use to pay state/local taxes

4

Use it to buy something wouldn't otherwise/Use for special purchase

3

Use it on a vacation

1

Other

11

No reason in particular

4

No opinion

3

Percentages add to more than 100% due to multiple responses.

Thinking back to the tax return you filed last year, which of the following applied to you -- [ROTATED: you received a large tax refund, you received a small tax refund, you basically broke even, you had to pay a small amount of taxes, (or) you had to pay a large amount of taxes]?

2007 Mar 2-4

%

Received a large refund

18

Received a small refund

37

Broke even

12

Had to pay small amount of taxes

13

Had to pay large amount of taxes

10

Doesn't apply/don't file (vol.)

8

No opinion

2

(vol.) = Volunteered response

Now thinking more generally, what have you been most likely to do with tax refund money you have received in the past -- put it in a savings account or invest it, use it to pay a major bill, spend it on a vacation, spend it on some other major purchase, or did you not do anything special with it?

2007 Mar 2-4

%

Put it in a savings account or invest it

24

Use it to pay a major bill

38

Spend it on a vacation

5

Spend it on some other major purchase

7

Not do anything special with it

20

Doesn't apply/don't file (vol.)

4

No opinion

2

(vol.) = Volunteered response

Which do you think is the worst tax -- that is the least fair -- federal income tax, federal Social Security tax, state income tax, state sales tax, or local property tax?

ASKED OF A HALF SAMPLE

Federal
income
tax

Federal
Social
Security
tax

State
income
tax

State
sales
tax

Local
property
tax

No
opinion

%

%

%

%

%

%

2005 Apr 4-7 ^

20

10

7

17

42

4

2003 Apr 7-9

21

11

11

13

38

6

1994 Jun 17-Jul 6

27

13

7

14

28

11

1992 Jun 23-28

25

10

9

16

25

15

1990 May 4-22

26

15

10

12

28

9

1989 Jun 9-22

21

18

9

14

28

10

1988 Jun 11-19

26

17

9

15

24

9

^ Asked of a half sample

Which do you think is the worst tax -- that is the least fair -- [ROTATED: federal income tax, federal Social Security tax, state income tax, state sales tax, (or) local property tax]?

ASKED OF A HALF SAMPLE

Federal
income
tax

Federal
Social
Security
tax

State
income
tax

State
sales
tax

Local
property
tax

No
opinion

2005 Apr 4-7 ^

20%

12

14

14

35

5

^ Asked of a half sample

Do you believe it is becoming -- [ROTATED: easier for someone to cheat on their income taxes, has there been no change, or is it becoming harder for someone to cheat on their income taxes]?

Easier

No change

Harder

No opinion

2005 Apr 4-7

21%

35

30

14

Now we have a question about your 2005 income tax filing with the IRS, for what you earned in 2004. Are you planning to, or did you already, send your tax return to the IRS by mail, or electronically by computer?

Mail

Electronically

Not sure
(vol.)

Doesn't
apply/
Not filing
(vol.)

No
opinion

%

%

%

%

%

2005 Apr 4-7

43

44

10

2

1

2003 Apr 7-9

52

34

3

11

*

2001 Apr 6-8

62

28

2

7

1

1999 Apr 6-7

66

20

4

9

1

1997 Mar 24-26

77

15

2

6

*

* Less than 0.5%

(vol.) = Volunteered response

As you may know, the federal income tax cuts passed into law since George W. Bush became president are set to expire within the next several years. Would you favor or oppose making those tax cuts permanent?

BASED ON 478 NATIONAL ADULTS IN FORM A

Favor

Oppose

No opinion

%

%

%

2004 Dec 17-19

52

40

8

2002 Nov 8-10 ^

64

29

7

^ WORDING: As you may know, the federal income tax cuts passed into law last year are set to expire in 2011. Would you favor or oppose making those tax cuts permanent?

Which of the following statements best represents what you feel about the federal income tax system -- [ROTATED: it needs to be completely overhauled, it needs major changes, it needs minor changes, (or) it is basically fine the way it is]?

BASED ON 524 NATIONAL ADULTS IN FORM B

Completely
overhauled

Major
changes

Minor
changes

Fine the
way it is

No
opinion

2004 Dec 17-19

24%

35

29

11

1

2000 Jan 13-16

26%

35

28

9

2

Do you think the tax cuts which Congress passed and George W. Bush signed into law have -- [ROTATED: mostly helped the U.S. economy, have had no effect, or have mostly hurt the U.S. economy] -- over the past three years?

BASED ON 484 NATIONAL ADULTS IN FORM A

Mostly
helped

No
effect

Mostly
hurt

No
opinion

2004 Oct 9-10

39%

23

35

3

2004 Aug 23-25

32%

29

32

7

Do you think the tax cuts which Congress passed and George W. Bush signed into law have -- [ROTATED: mostly helped your family, have had no effect, or have mostly hurt your family] -- over the past three years?

BASED ON 531 NATIONAL ADULTS IN FORM B

Mostly
helped

No
effect

Mostly
hurt

No
opinion

2004 Oct 9-10

34%

48

16

2

2004 Aug 23-25

30%

48

20

2

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