Posted on 04/19/2014 11:09:17 AM PDT by SeekAndFind
The latest Reason-Rupe poll asked Americans if they would support or oppose changing the federal tax system to a flat tax, where everyone pays the same percentage of his or her income, finding that 62 percent favor the flat tax and 33 percent are opposed. When asked where they would set the flat tax, the aveage response was 15 percent.
This reflects another recent Reason-Rupe poll finding that 67 percent of Americans say it is "not the responsibility of the government to reduce the differences in income between people with high incomes and those with low incomes," while 29 percent say it is.
Strong support for a flat tax extends across income groups (62 percent) among those making less than $30,000 a year and 73 percent among those making more than $110,000 a year. Similarly across education groups and age groups, 6 in 10 say they support the flat tax.
Support for a flat tax extends beyond partisanship, with 66 percent of Republicans, 68 percent of independents, and 52 percent of Democrats in support. Nevertheless, Democrats are more likely to oppose the flat tax (43 percent) compared to Republicans (29 percent) and independents (29 percent).
Americans who say the less government the better and that the free market can better solve problems than a strong government, favor a flat tax by a margin of nearly 50 points (roughly 72 to 25 percent). However, those who think government should be doing more and that we need a strong government to solve problems favor a flat tax by only 8 points (roughly 51 to 45 percent).
These results seem to contradict previous Reason-Rupe poll results finding a majority in support of raising taxes on the wealthy—implying support for a progressive rather than flat tax. In 2012, Reason-Rupe found that 57 percent favored raising taxes "on those making more than $250,000 a year," while 39 percent opposed. Again, in 2013, Reason-Rupe found that 66 percent favored the government raising taxes on “wealthier households,” while 31 percent opposed.
Americans Think The Middle Class Pays More Taxes Than the Rich
One explanation for why Americans say they want both a flat tax and to raise taxes on the wealthy is that 66 percent of Americans are under the distinct impression that the middle class is literally paying a larger share of their income in taxes than the wealthy. Rhetoric throughout the 2008 and 2012 presidential campaigns made many Americans believe they were paying more in taxes than the wealthy. Reason-Rupe recently asked Americans who favor these tax increases to explain in their own words why they wanted the wealthy to pay more. While many of the reasons were about the rich being better able to afford higher taxes, many revealed that they believe the rich actually pay less taxes than they do (full responses here):
Urban Institute data reports that in fact, the wealthy do pay a higher tax rate than the middle class. Average effective federal tax rates in 2011, as a percentage of adjusted gross income find the following (after tax credits):
Lowest Income Quintile: -5.8%
Second Quintile: 1.3%
Middle Quintile: 9.2%
Fourth Quintile: 12.9%
Top Quintile: 20.6%
The “1 Percent” pay 25.3%”
Reason-Rupe also found that only about 20 percent of Americans knew the actual share of federal income tax dollars paid by the top 5 percent of households, which is roughly 60 percent of all tax receipts. Without knowing these facts, 57 percent of Americans say they think the top 5 percent should contribute no more than 40 percent of all the tax revenue collected.
These data indicate that the public really doesn’t know how much the rich pay, and often likely make policy judgments based off of the political rhetoric of the politicians and pundits they trust. The more Americans are led to believe that there is widespread cheating among the nation’s wealthy, the greater the support for raising their taxes.
Even though recent polls show that Americans say they support a flat tax and don’t believe government has a responsibility to reduce the income gap, Gallup has found in recent years that a slim majority (52 percent) supports the government “redistribut[ing] wealth by heavy taxes on the rich.” It’s unclear if different wording, the belief that the rich pay less than the middle class, or something else explains these seemingly contradictory findings. It’s likely that many Americans don’t know what the word “redistribute” even means and thus respond as if this is just a question about raising taxes on the wealthy.
Nationwide telephone poll conducted March 26-30 2014 interviewed 1003 adults on both mobile (503) and landline (500) phones, with a margin of error +/- 3.6%. Princeton Survey Research Associates International executed the nationwide Reason-Rupe survey. Columns may not add up to 100% due to rounding. Full poll results, detailed tables, and methodology found here. Sign up for notifications of new releases of the Reason-Rupe poll here.
Emily Ekins is the director of polling for Reason Foundation where she leads the Reason-Rupe public opinion research project.
You are right, right, right…..
Bingo. look at last years tax return then take out the property tax and mortgage interest rate deduction as well as your $2,500 personal deduction. Then tax your full gross income at 20% which is what they want to do. You will pay more everytime.
“•“Look at Romney paying less taxes”
•“I think the wealthy should pay as much as the poor percentage-wise equally”
•“I heard too many stories of loopholes that the wealthy figure out how to get out of taxes”
•“Fair share—same percentage”
Most people don’t realize that Romney and most rich people are taxed at the capital gains rate of 15% since they don’t W-2 themselves. They take interest and dividends and pay the capital gains rate. They get this rate because they are job creators and business entrepenuers who invest their money and take chances to build and run business’s. The average Joe does not do that.
This flat tax is a really good idea for Paul Ryan and the tax collectors. A really bad idea for you and me. What we really need is a Fair Tax. Everybody pays it and your lifestyle dictates how much tax you pay. Your choice.
RE: I prefer the “Fair Tax” over the Flat Tax.
The problem (still) with the flat tax is this — What constitutes income?
That doesn’t neuter the IRS at all. It does simplifies the tax code but “income” is still defined by Congress and still confiscated by the IRS.
For instance, Will your estate still be FLATLY taxed after you die?
If the answer is yes, then the flat tax STILL does not disempower the IRS.
In other words government has grown so dramatically in the past several decades, the only way to stop it is to stop feeding it. Substantially reducing the size of government will never happen unless we reduce the payroll/revenue it consumes.
Again, this will never happen unless the tax structure is completely changed and that change must include hundreds of billions less every year the government operates on, putting the money back into the pockets of Americans. There is no other way
Depends on what they call income. We know we have millions who are receiving their payment in all cash. Millions of others are living entirely on funds from EBT, WICK, housing subsistance, etc. These people would still end up paying nothing.
IMO if we are going to push for changes in taxes all current Federal taxes and fees should be abolished and use a consumption tax on everything but groceries. That would hit everyone.
Jim, this is THE answer to MOST of our nations woes:
“Reduce the federal government to only those functions enumerated and delegated to it by the U.S. Constitution and you reduce the federal budget by about 90%. The largest item would be national defense. All other functions to be returned to the states and the people to decide per the 10th amendment.”
BRAVO!!!
This is discussed year in and year out...Over and over and over.
The reason this punitive tax structure is never ending and never dramatically changes to the benefit of tax payers, is because the government does not want to do anything which will affect the massive amount of money government consumes.
End of story.
Only matters what the oligarchs want.
A consumption tax, on the other hand, could be much simpler.
;>]
No damn way, if you don’t like paying taxes read the tax code and use it to NOT PAY TAXES!
I get screwed royally under a flat tax!!!
We were raped enough by the 1986 “Tax Simplifacation Tax”, which was the biggest tax increase in history!
“We need a simplified code to make it easier to comply.
Yes. The fact that many of us need to hire an accountant to make sense of this mess is another substantial expense.
At 15% flat tax, $20,000 income would mean a $3000 flat tax. That's $250 a month. It's enough to have everyone have everyone invested in keeping government spending in check, and a flat tax would create a sense of "we're in this together".
And a lot of people would not have the headache of having to pay someone to do their taxes. There is no downside to a flat tax.
RE: How about NO tax.Tax corporations/businesses. Everyone (except corporations and business) say they don't pay taxes.
How do you run the government with that?
Agree that the flat tax is the best answer.
people answer that way because they think they are paying more taxes than they currently are.
The average person thinks the amounts taken out for social security and medicare are part of their income taxes. When the fact is most neither are and most people currently pay no income tax.
Once they realized that a flat tax would mean THEY would actually pay A LOT more than they currently are, they would turn against it faster than you could say jack robertson.
You’re right about that. I know it certainly won’t end in my lifetime except that I do think the percentage floor on deductions will continue to go up and the number of deductions will continue to decline.
The 25-something generation is not going to be buying any houses soon so that will do away with real estate taxes and interest payment. I also doubt if they make any significant donations to either charities or their church so there goes that. Slowly but surely the government is whittling everything down so we will all be filing on a short form.
Talking about changes to taxes IRS is on a par with discussing who will be the presidential candidates in 2016.
I support a reasonable flat tax. Everyone should have skin in the game. I don’t care how much or how little you make, whether it’s wages, salary, unemployment, welfare, or something else, no one should be exempt from paying some tax. And no “earned income credit” That amounts to nothing but unearned income credit, courtesy of the rest of us. I support myself and my family. The rest of you do the same. Your kids are not my kids; don’t expect me to feed them.
Unless the idea that Lindner and Neal Boortz kept pitching with the Fair Tax, the government pays a portion back for food and medicine to everyone, the Fair Tax is DEAD IN THE WATER as far as I’m concerned.
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