Tax Revenue: Perception vs. Ideal (vs. Reality)
Americans are not far off on knowing how much individuals pay in taxes, but they have little grasp when it comes to the percent coming from businesses
a Trendency feature
While Americans are pretty close on the percent of federal tax revenue that comes from individual income taxes, they almost entirely forget about payroll taxes while overestimating the percent of revenue that comes from corporate income taxes.
Americans think that payroll taxes only make up 16 percent of federal tax revenue, less than half of what it actually makes up - payroll taxes actually make up 35.9 percent of federal tax revenue, according to the Center on Budget and Policy Priorities. In contrast, Americans think corporate income taxes make up more than twice their actual contribution. Actually, corporate taxes account for 7 percent of federal tax revenue
Additionally, Americans think excise taxes contribute four times more than they actually do.
Americans would like to see income tax revenue on those making over $500,000 a year increase slightly while they think corporate income taxes should increase by 6 points.
Americans feel that those making more than $500K should be paying a much bigger share than they currently do (or than Americans think they do). Currently, those making $500K or more make up about 20 percent of revenues. Americans think it’s 23 percent, on average, and feel it should be 26 percent.
They also feel the share of those under $500K should be about half of what it is. Indeed, this cohort currently makes up about 30 percent of revenues. Americans think it is 23 percent and feel it should be 16 percent.
Women think high earners should be paying a much higher percent of taxes. Men are generally OK with the current proportion.
While men think that people making over $500,000 a year are paying about the right amount of taxes, women think they should be contributing 7 percentage points more.
Americans of both genders think that individuals making less than $500,000 should be paying far less.
White, Black, and Hispanic Americans all feel that individuals making less than $500K should be paying a much lower percent of revenues, and also agree those making more should be paying more.
Americans of all age groups feel individuals making more than $500K should be paying a bigger percent than they do, or as they are perceived to do. Americans of all ages also universally support cutting the percent from those making under $500k
In a rare occurrence for this country, Democrats, Republicans, and Independents all agree that those making more than $500K should be paying more, while those making less should be paying less.
Regardless of household income, Americans feel those making less than $500K should be paying about half of what they currently are into the Treasury. As income goes up, the perception of how much those making more than $500K goes down slightly.