Most Americans Say Tax Code Unfair To Poor, Middle Class: Survey

Most Americans think the U.S. tax code is unfair and benefits the rich, according to a CNN poll released on Tuesday.

As Americans scramble to send in their taxes, some are deriding the tax code's priorities.

Nearly 70 percent of Americans say they think the current tax code is unfair and benefits the rich, according to a CNN poll released on Tuesday: tax day. While Americans might think the tax code is generally unfair about half said they think they pay the right amount in taxes.

The findings come as Americans' focus on the tax system is sharpening -- and not just because taxes are due. The Buffett rule, President Obama's proposal to raise taxes on the wealthiest Americans, failed in the Senate on Monday after Senate Republicans blocked the vote through filibuster.

The CNN poll findings mirror others indicating that Americans are fed up with the tax code. More than 50 percent of respondents said in Pew Research poll in December that they think the tax system is unfair, and 57 percent of them said they are most bothered by feeling that the wealthy don't pay their fair share.

The government spends $1.3 trillion per year by offering certain types of tax breaks, according to the Tax Policy Center. Politicians like to spend through the tax code because it is stealthier and easier to lock in, according to Betsey Stevenson and Justin Wolfers, economics professors at the University of Pennsylvania.

One tax break for the wealthy that's lately garnered attention is the lower tax rate on investment income. That's because Republican presidential frontrunner Mitt Romney paid a 13.9 percent tax rate in 2010 -- far lower than that of most middle-class Americans -- in part because he earned most of his income from investments.

Another tax break that benefits the wealthy more than others is the mortgage deduction. Homeowners that earn more than $250,000 per year save an average of $5,459 in taxes by claiming the mortgage deduction: 10 times more than average homeowners that earn $40,000 to $75,000 per year, according to economists at the University of Pennsylvania. Renters save nothing.

President George W. Bush's tax cuts have also shifted more of the tax burden from the rich to middle-class families, according to the Congressional Budget Office.

Comments

[Mark Cormier Arizona]

03:51 PM on 04/24/2012

Support the Fair Tax.......then April 15 would just another day.
HR 25 in Congress.
http://www.amazon.com/The-Fair-Tax-Quick-ebook/dp/B007I9AKN8/ref=sr_1_4?ie=UTF8&qid=1335296868&sr=8-4

[opinionated indeed]

04:01 PM on 04/20/2012

For some reason, the results of this poll make no sense to me. It seems pretty insignificant/obvious to say 70% of Americans believe the tax code is unfair to the poor and middle class because that 70% is more than likely made up of the poor and middle class. I could not find the answer in the study methodology, but I would like to know what proportion of that 70% surveyed is either poor or middle class. What a worthless study! It's bottom line implication is: "Poor me. I am poor/middle class and the tax system is unfair to me."

[PotomacOracle]

09:22 PM on 04/21/2012

Ya, these guys really try to get to the nub of the issue with these surveys. Jeez, does that means thirty percent of Americans believe its a fair tax code??? Oh man, who are they?

[Cathy Roberts Eads]

11:56 AM on 04/19/2012

The Answer is The Fair Tax - it *replaces* the income tax and payroll tax. Everyone will pay according to what they spend, and it provides exemption for "essential living" expenses such as food and healthcare. Visit www.FairTax.org for full information on the Fair Tax. If you agree it's a plan that will work, please contact your elected officials and tell them to support HR 25. It was introduced in Jan. 2011. It now sits in committee.

[PotomacOracle]

09:32 PM on 04/21/2012

What does the IRS and Federal Reserve do with all that tax money? They burn it, shred it, pour chemicals on it to dissolve it. they sure as the Sun rises in the East don't use it to pay for anything. You've been punked by your elected officials from O to the town Treasurer.

You see America, through the privately owned Federal Reserve System issues all of our currency. It has to create that currency from thin air. Nobady else can legally issue dollars in America except the Fed. Since it issues all the dollars, tell me why would it need revenue? Where would the revenue come from?

The Fed just issued a trillion dollars. That's all the money in the economy. Now, Congress levies a tax. The tax does not raise revenue because the money to pay the tax comes from the trillion bucks. The government cannot collect taxes or borrow money until it first issues the trillion dollars. create the money then take some of it back. this is not revenue generation. This is inflation management. That's what taxation does. It makes sure we don't spend more money than there are goods for sale.

Income taxes should be at an effective rate of near zero since federal taxes don't pay for anything we should keep more money in our pockets to boost aggregate demand.

www.modernmoney.wordpress.com

Your welcome.

[Victoria Ayers]

11:40 AM on 04/19/2012

Government is a mechanism to pool our resources to create improvements to society that we cannot, ourselves, provide. We buy a military, interstate highways, schools, policemen, etc.. Taxation is the name we use for the process of paying for what we want to collectively accomplish. But ow do we decide what it is we want to buy and shere we want to put our collective financial might? We have left it to "government" to decide. No businessperson in the world would let his/her purchasing department operate without oversight. It invites theft and corruption. But that is exactly what we have done, and now, with our "purchasing department" filling their own pockets, providing for their friends, manipulating the mix of products on the shelves to serve private agendas, we are arguing about how we are going to scrape up the money. We are being cozened with false promises (More money to the rich means creation of many well-paid jobs.) and intimidated with false threats (Free healthcare will turn us into a socialist nation and bankrupt our progeny.) and all of it is BS. WHAT DO YOU, AS A CITIZEN OF THE GREATEST NATION ON EARTH, WANT TO BUY WITH YOUR HARD EARNED MONEY? Would you help the elderly, or the oil companies? Decide what you want and then we can figure out how to pay for it. But for God's sake, quit accepting that a venal, self-serving "purchasing department" ought to be running the store.

[PotomacOracle]

09:36 PM on 04/21/2012

Federal income taxes don't pay for anything.

www.modernmoney.wordpress.com

There are other sites that explain MMT...Modern Monetary Theory. You should be aware of the fact that the U.S. has not used tax revenue to pay for stuff since August, 1971.

[Hatima Transport]

10:00 AM on 04/19/2012

let the poor pay taxes for the rich..it is the Roman way..ooh wait...Roman empire doesn't exist anymore.

[carburetor]

07:28 AM on 04/19/2012

Not only is the tax code unfair... the entire process is far too complicated. There has to be an easier way and a fair way for everyone and every business to pay taxes. If everyone paid, the bill would lower for all of us. The system is a basket case in its current form.

[Mark Cormier Arizona]

03:50 PM on 04/24/2012

Right you are.......its called the Fair Tax.
Read it, support it. HR25 in congress.
http://www.amazon.com/The-Fair-Tax-Quick-ebook/dp/B007I9AKN8/ref=sr_1_4?ie=UTF8&qid=1335296868&sr=8-4

[carburetor]

10:05 PM on 04/24/2012

Apparently it still needs some tweaking. It has a predicted 3% chance of passage.
http://www.govtrack.us/congress/bills/112/hr25

At least, someone is looking at alternatives to the IRS money pit. I like the sales tax feature since nobody escapes from paying taxes. Essential food and medicine should be excluded from the tax, whereas luxury foods and beverages should retain it. Thanks, Mark. This would catch a lot of lost revenue from income tax avoidance schemes like day labor and unreported small business cash transaction income.

[iam99]

02:35 AM on 04/19/2012

A child would arrive at this conclusion after a ten minute presentation on the subject.

[electro0z]

09:31 PM on 04/18/2012

pure and simple...a flat tax is needed!

[radams36]

10:49 PM on 04/18/2012

Pure baloney and simple-minded. A flat tax rate disproportionately burdens the poor and the middle-class. There's a reason rich fat-cats like Steve Forbes like the idea.

[Gypsyflame]

10:53 AM on 04/19/2012

Tax simplicity is not about the rate. It is about all the deductions, sneaky ways to reduce income, and the calculations embedded in the code. Simplicity is: you made this much, this is your rate based on that amount: pay up. Period.

[PotomacOracle]

09:40 PM on 04/21/2012

It's really about the fact that operationally, Federal income taxes don't pay for anything, since August, 1971. That's when Nixon closed the gold window. Lots of Americans never got the memo telling them that there was no longer a need to balance budgets or worry about deficits as long as inflation was controlled by interest rate policy, and we operated the economy at close to full employment.

[bvgat]

05:20 PM on 04/18/2012

The problem with the question is that people have different notions of what constitutes fairness.

I believe a flat tax (without deductions) is fair - You pay in direct proportion to what you earn - If Person A makes ten times as much as Person B they pay ten times as much. However this notion is very unpopular among liberals who feel wealthier people should pay not only a higher dollar amount but a higher percentage then poorer people They will often site things like the wealthier person can spare it more then the poor person or they "use" more services, etc, etc.

The point is people will not agree on what they consider fair. For example - It's easy for a large segment of those in our country (47%) who pay no federal income tax to think that it's fair to increase the rate on those who already pay federal income tax. If you are one of those who pay federal taxes odds are your opinion will differ.

[Dimshao]

05:09 PM on 04/18/2012

We must throw the whole IRS system into the trash, and replace it with a federal tax on everything to balance the budget with no exceptions or exemptions allowed by constitutional ammendment, which must also require a balanced budget. Big consumers will pay the most by this system.

[Mark Cormier Arizona]

07:51 PM on 04/18/2012

I agree.......its called the Fair Tax.........no loopholes, period.
http://www.amazon.com/The-Fair-Tax-Quick-ebook/dp/B007I9AKN8/ref=sr_1_4?ie=UTF8&qid=1334792795&sr=8-4

[Dimshao]

08:38 PM on 04/18/2012

We must replace the IRS income tax with a federal sales tax on everything to balance the budget with no exceptions and no exemptions allowed by a constitutional ammendment, which must also require a balanced budget. Big consumers will pay the most by this system.

[Gypsyflame]

10:55 AM on 04/19/2012

And the poor won't be able to buy food and medicine. Terrible idea.

[7979barb]

03:42 PM on 04/18/2012

There are so many things about the tax code that are criminal. Lets see the Sixteenth amendment which they state gives them the power to tax has never been ratified by the majority of the states. The Federal Reserve Act is in contraindication to Article 1 Section 8 which states ...."only congress shall have the power to coin money and regulate the value thereof"....The Federal Reserve Banks are not federal and have no reserves. They have been in existence for almost 100yrs and have never undergone a audit.They do not have any oversight, congress is not allowed in on their decision making or private meetings. Yet they control the money of this nation. The IRS is used only as a means in which to hide their inflation which they cause. So you tell me why the citizens of this country should not believe that the tax codes are wrong and benefit the rich? Tell me why corporations pay less taxes than the average citizen? It's wrong and the solutions put forth do not solve or alleviate the underlying problems. The problem is the Federal Reserve Banks are stealing America's wealth on a hourly basis.

[Malcontent21]

12:52 PM on 04/18/2012

They think the tax code is unfair now just wait until they see the Paul Ryan budget with trillions in cuts to the poor and middle class and more tax breaks for the rich.

[Livid]

03:26 PM on 04/18/2012

The Ryan budget is a complete fraud.

[Malcontent21]

03:53 PM on 04/18/2012

And extremist.

[forty8r]

12:52 PM on 04/18/2012

No question about it is an unfair tax system. The tax code taxes capital income at less rates than labor income.

[Mark Cormier Arizona]

07:52 PM on 04/18/2012

That is because the money invested that creates the income investment has already been taxed once at full rate........this is a second tax!!

[radams36]

10:51 PM on 04/18/2012

Oh, come on, now. This idiotic 'double taxation' canard is transparent bull and always was. I could just as "logically" claim my income shouldn't be taxed, because it was taxed already when my employer "earned" it before they paid it to me.

[MeanietheCat]

09:00 AM on 04/19/2012

I don't see the 'double' part - if I earn and pay taxes on $1000, save it and then get $10 interest I pay tax on th $10, not the whole $1010.

[Smarty5]

12:14 PM on 04/18/2012

And yet the same middle class voted for Reagan and Bush and re-elected them as well.

[Rodger leMonde]

12:10 PM on 04/18/2012

With my taxes I buy civilization. An arrangement I approve of.

[makeck]

12:50 PM on 04/18/2012

Civilization is a thin veneer.