Posted on 04/12/2005 10:10:09 AM PDT by SmithL
WASHINGTON - Most Americans think federal income taxes are too complicated, but they're not eager to simplify tax preparation by getting rid of some deductions and tax credits, according to an AP-Ipsos poll.
Forty-five percent of those polled support eliminating them, while 51 percent oppose that approach.
Millions of Americans are scrambling to meet the April 15 tax deadline. Many acknowledge they dread preparing the tax forms.
"Anybody who says they don't mind their taxes is lying," said businessman William Long of Ferris, Texas. "I definitely put them off until the last minute, even when money is coming back. I just don't want to deal with them."
Seven in 10 said their federal taxes are too complicated, according to a poll conducted for The Associated Press by Ipsos-Public Affairs. The survey found 49 percent would prefer a trip to the dentist while 48 percent would rather prepare their taxes.
Nearly a third of the 133 million income tax returns expected this year will arrive at the Internal Revenue Service during the last two to three weeks before the April 15 deadline, IRS spokesman Eric Smith said. He anticipated that almost 9 million will file extensions so they can file late returns and 2 million to 3 million are expected to miss the due date.
"If there's a deadline, some people will do almost anything to avoid it," Smith said.
About a fourth of those responsible for their family's tax preparations said they had yet to start their returns or only began preparing them the week before they were asked, according to the poll taken last week.
Simplifying the tax system is the goal of a federal panel created by President Bush that will collect information over the next few months and is expected to offer recommendations by midsummer.
Some proposals that might be considered include:
_Reducing income tax rates while imposing a national sales tax.
_Instituting a flat tax that would have everyone pay the same rate regardless of what they earn.
Most people don't like the flat tax idea, with 57 percent of those surveyed saying people with higher incomes should pay a higher tax rate. Only 40 percent thought tax rates should be the same for everyone.
People who make $75,000 or more a year were most likely to support that plan, but they were about evenly split. Other income groups opposed it.
By a 3-to-1 margin, Democrats favored the wealthier paying a higher rate, while Republicans were more likely to favor taxing everyone at the same rate.
"There are the fortunate few who are making their living on other people's hard work, they can afford to give more back to the government," said Phil Rosenfeld, a computer consultant from Miami who leans Democratic.
Kim Howard-Johnson, a San Diego homemaker who leans Republican, said she would like to see the tax rates the same for all income levels.
"I think it should be changed," she said. "That's the fairest thing to do. It would provide an incentive for people to make more money."
Amy Cavendar of Baton Rouge, La., said she doesn't even attempt to do her own taxes.
"I have income coming in from two states, so I have to get them done so I don't slip up on any of the laws," she said "I know my weaknesses enough to find somebody to do them. I've already filed and gotten my refund."
The AP-Ipsos poll of 1,001 adults was taken from April 4-6 and has a margin of sampling error of plus or minus 3 percentage points.
I guarantee, if you magically did away with all deductions, they would all be right back within 10 years.
"those surveyed?" I guess those surveyed equals "Most people" And who would those surveyed be?... Democratic Senators? Democratic "activists"? Democratic special interest groups?
I lucked out and don't have to pay the feds a dime :)
The language they use kills me. Even how they word the subtraction problems is unintuitive (for me anyways.) The biggest problem i had was figuring out what an "Ordinary dividend" was and what a "Qualified Dividend" was, and the difference between the two.
I support simplification, not because doing taxes is too complicated, but because we should make them more fair. Either a universal income tax percentage, or no income tax and only sales tax. I prefer the latter.
If you would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25), offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information:
Most people are scared what might happen if a flat tax were introduced, because they would lose a lot of deductions and exemptions, and who knows what they would end up paying?
I've heard what flat tax advocates have to say, but that's just their theories. What would happen in practice? How can you reduce taxes unless you reduce spending? And what kind of a record do politicians have of reducing spending over the past hundred years? Or at any time in history?
Yes, taxes are a nightmare. But it's hard to visualize them getting much better short of the dissolution of the country and the rise of a new one, or the end of the world, or some similar event.
And ditch the sales tax except for luxury items.
The present income tax code was made by lawyers for lawyers.
"Anybody who says they don't mind their taxes is lying,"
Schedule A is no problem. Whereas, do away with Schedule D (e.g. as Reagan said, "ELMININATE the Capital Gains Tax), and do away with Form 6251 (the dreaded Alternative Minimum Tax) and I'd be a happier camper. Go to two tax brackets, 15% for the poor and 20% for the rest of us. Stop limiting deductions for everything above line 19 or so, and get rid of deductions for gambling losses. Etc. I think you get the idea.
And ditch the sales tax except for luxury items.
"The present income tax code was made by lawyers for lawyers."
If you haven't got the mental capacity to read, comprehend, and use the tax code to your advantage, go hire a CPA.
What's complicated for me is how I'm gonna pay the taxes I owe now....And pay H&R Block who did them. When I did my taxes on TurboTax, I owed less...went to H&R and now owe more. Go figure.
Get Turbo Tax, Amy.
I thought it was made by CPAs for CPAs.
You can make the tax base larger (have more people pay) and/or you can make the process of collecting and remitting taxes less expensive. Just two ideas...I'm sure there are more.
If you're having a pizza party with 18 people costing $90, you could charge 9 people $10 each OR charge 18 people $5 each. You expanded the base of paying pie-eaters.
Suppose the delivery is made in an Abrams A-1 and costs $300 to deliver the pie - you could instead have delivery made in a Honda Civic costing $2.
I agree for the most part. The problem with eliminating the gambling loss deduction is that it can only be used to offset winnings for that year. Does it really make sense to have to pay tax on $10,000 worth of gambling 'earnings' if it cost you $20,000 to get that $10,000?
They've been doing it all along, Reduce Federal taxes by cutting funding to the states, states cut funding to the locals and schools, school and locals raise taxes.
Somehow that is considered a tax cut?
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