Over 90% of all American citizens want investments tasked as much as wages. That’s according to a survey conducted by WalletHub. This debate has even been brought up through the current presidential election debates that are taking place in the country. Americans, it appears, want tax equality – and that means tax reforms.
Critics have argued that there’s worsening income equality under the last two administrations. This inequality has also been perceived through gender and marriage rights. Based on the WalletHub study that involved more than a thousand American taxpayers, below are the most common tax reform issues that people are interested in.
I. Equality before Economy
When asked what they thought was the most important among ‘tax fairness’, ‘tax equality’ and ‘what’s best for the economy’, most respondents in the survey placed economy at the end of their priority list. Over 60% said that they wanted tax fairness while about 20% placed a lot of prominence on tax equality. 18% thought that the economy was the priority issue. This perhaps wouldn’t have been the response a few years ago during the Great Recession, when a majority of Americans poured their hearts out to the economy.
II. More Simplicity with Fewer Deductions
Taxation is an expensive affair. In addition to the fact that about 31% of each American’s annual income goes to local, state and federal taxes, taxpayers spend billions (and a lot of time for that matter) trying to file returns and comply with tax regulations. That’s an additional cost that’s brought about by the complication of the tax code. Most Americans would wish that this code was less complicated. According to the WalletHub survey, more than 80% of the respondents think that the tax code has become ‘too complex’. This is compared to only 2% who think that it’s ‘simple’. Nearly a half of polled respondents think that a simpler and fairer tax code would only have fewer deductions.
III. More Tax for Corporations
Wall Street vs Main Street – that’s a rivalry that has decorated the American taxation debate for years. Many taxpayers, it appears, were enraged by the government’s bailouts of major firms, including those that contributed to the recent recession. The fact that corporate profits have bounced much faster than household incomes typically ‘adds salt to the injury’. Some of the largest and most profitable American companies are parking overseas in order to avoid hefty taxation in the U.S. over 90% of respondents in the WalletHub survey said that investments should be tasked as much as wages are. This piece of information clearly highlights the current taxpayer sentiment.
IV. More Tax for Wealthy Americans
More Americans want a heavier tax burden imposed on the rich. In fact, most people would prefer a model where tax rates increased steadily based on income. This view has been held by American taxpayers for quite a long time, and it’s no surprise it’s brought up every time there’s a looming presidential election!
To sum it all up, American taxpayers really want Uncle Sam to view and treat all his children equally when it comes to paying taxes.