So, You Want to Find Out about IT or Income Taxes?
IT is Income Taxes and IT makes many of us... shall we say, edgy, anxious, angry, frustrated, and lost.
This page outlines some statements and opinions taxpayers have on the idea and effort of paying income taxes to the federal and state governments. Filing taxes is the only way to accurately calculate your tax liability; you should file and claim your refund or pay off your taxes if you owe.
What is a tax refund?
Let's look at what taxpayers have said in surveys and review feedback on paying taxes.
What Do Most Americans Think About Income Taxes?
According to one recent survey1), this is what taxpayers think about income taxes.
- 72% of Americans think their current tax rate is too high, 26% just right, and 2% too low. Many would like to pay less for almost anything. But what do we really get for taxes when we already pay for services like passports and permits?
- Over 75% of folks are currently more worried about inflation than taxes right now. Inflation acts like a tax hike, as we get less for our dollars. Is this inflation driven by policies like the Federal Reserve’s money printing?
- 39% of individuals think donating to charities would be overall more beneficial instead of giving their money to the government or religious groups. We see wealthy individuals fund tax-free foundations. Would we be better off donating to charities we support instead of funding government programs we don't need?
- 28% of people stated that their biggest concern is a tax audit. Are taxpayers more worried about missing data on their returns or the arbitrary nature of audits? See tax audit stories.
"The difference between a tax auditor and a Doberman
is that the Doberman eventually will let go!"
- Over 21% of Americans know somebody who cheated on their tax return. While there are legal ways to pay less taxes, some resort to illegal methods for refunds or avoiding taxes. See more on tax evaders.
- Nearly 65% of people state that companies who advertise free tax filing services are not really being truthful. Creating tax software is complex and costly. Many believe it's unfair to pay for tax filing, given the complicated tax code. Learn more about free tax returns and how eFile is the only platform that downgrades you to ensure you always pay the lowest price.
- 90% of Americans think filing taxes should be free. Shouldn’t public services be free? Who covers the costs of “free” tax app services? This could lead to higher taxes or debt. The cost of developing IRS apps is unclear and often questioned. That’s why eFile.com offers free human support, regardless of payment. Spending an average of $29 on eFile.com for federal/state returns might be penny wise and NOT pound foolish. We aim to help you save taxes legally, offering a free version with detailed pricing here and no upgrade requests during preparation.
We examined other surveys and found that taxes are widely disliked. While responses to similar questions may vary, they generally align. Here’s the survey2) data:
- 56% of Americans feel they pay more than their fair share in taxes.
- 34% believe they pay about the right amount.
- 8% say they pay less than their fair share.
- 53% are bothered a lot by the complexity of the tax code.
As the price of goods and services rises while real wages stagnate—a process known as inflation—tax rates also increase. This means many pay more taxes relative to their income than they should. Some may feel their income and tax rate are fair, so they don’t mind paying taxes.
Additionally, over half of taxpayers find the tax code too complex and frustrating. Former U.S. Secretary of Defense Donald Rumsfeld even questioned the complexity of the U.S. tax code in a letter to the IRS. Many taxpayers rely on tax filing software like eFile.com to navigate these complicated forms, as the U.S. tax code is currently 3.7 million words long.
- 77% of taxpayers feel that corporations and wealthy individuals don’t pay their fair share in taxes.
According to IRS data, the top 5% of income earners pay roughly 60% of all federal income taxes; the top 1% of income earners pay about 40% of all income taxes; the top 0.1% fronts the bulk of all income tax funding the IRS collects. See more IRS statistical data for individuals.
What Taxpayers Would Rather Do than Prepare their Taxes
The first cited survey is used again below; this platform had this same questionnaire several years ago and the results below show the comparison over time. Here is what taxpayers would rather do than preparing taxes:
- 42% would rather do jury duty: down from 49%.
- 22% would rather talk about sex with their children: down from 36%.
- 15% would rather miss a connecting flight: down from 26%.
- 9% would rather spend a night in jail: down from 16%.
- 4% would rather swim with sharks: down from 15%.
- 8% would rather drink expired milk: down from 13%.
Taxes bring on stress, anxiety, and anger when it comes time to file and pay. We have to enter all the right figures or risk a tax audit and face the reality that we hand over a lot of our money every year to federal and state governments. We at eFile.com aim to alleviate some of the stress over IT so you can get your return(s) filed quickly and painlessly.
A World Without Taxes
When asked in survey1) what taxpayers would give up or sacrifice for a tax-free world, they answered:
- 57% would give up social media for one year
- 35% would move to another country
- 30% would get an IRS tattoo
- 28% would take a vow of celibacy
- 19% would stop talking for one year
- 16% would name their child Taxes
- 9% would clean prison toilets for 3 years.
1) Wallethub Tax Survey 2024, 2) PEW Research
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