With the tax filing deadline looming next week, a majority of Americans say completing a federal tax return is easy, according to a new Associated Press-GfK poll.
The findings defy conventional wisdom in Washington, where politicians have made careers out of promising a simpler tax system. In another blow to advocates of tax reform, almost no one is willing to pay higher taxes in exchange for a simpler code.
“If you’ve got the equivalent of a high school degree and you know how to do math, it’s very simple,” said Sara Thornton, a small business owner from East Granby, Conn.
Only 7 percent of those surveyed say they would be willing to pay more in federal taxes if the process of filling out a tax return were easier. Some 90 percent say “no, thanks.”
“No, because I don’t know that it is that difficult,” said Alicia Brown of suburban Des Moines, Iowa. “We already pay outlandish taxes because we live in Iowa. We have very high real estate taxes.”
The tax-writing committees in Congress have spent the past several years trying to build momentum for the herculean task of simplifying the tax code. One reason it’s so difficult is there are bound to be winners and losers. Sweeping changes to precious tax breaks will undoubtedly leave some people paying more, while others pay less.
One selling point for tax reform has been a simpler tax form. Ever hear a politician say you should be able to fill out your taxes on the back of a postcard? You’ll probably hear it again during this fall’s elections.
The National Taxpayer Advocate says filers spend a total of 6.1 billion hours a year preparing tax returns, at a cost of $168 billion. According to the IRS, 90 percent of filers either pay a tax preparer or use computer software to help them fill out their returns.
But 58 percent in the AP-GfK poll say completing a federal tax return is easy. Thirty-eight percent call it hard.
Fully 86 percent who have completed their tax forms say they are extremely confident or very confident that they filled them out correctly.
Not surprisingly, higher income taxpayers are more likely to say that filling out tax forms is difficult. Wealthy people tend to have more complicated taxes because they often have multiple sources of income and they are more likely to itemize their deductions, making them eligible for more tax breaks.
Forty-five percent of those with incomes above $100,000 said it is hard, compared with 33 percent among those making less than $50,000.
Through March 28, the IRS has processed 89 million returns. About 82 percent have qualified for refunds, averaging $2,831. That’s about $207 billion in tax refunds. Almost 91 percent of returns have been filed electronically.
Americans think most of their fellow taxpayers are honest, but not all of them. On average, poll-takers estimate that about one-third of Americans intentionally cheat when filling out their tax returns.
Erma Pierce of Poplar Bluff in southeast Missouri said she thinks about half of people cheat on their taxes, and she takes a dim view of it.
“You’re not supposed to cheat, lie or steal,” Pierce said. “It’s against the Bible.”
Thornton, the small business owner in Connecticut, said her estimate depends on the definition of cheating.
“People think of cheating as a case of, I reported I have nine children and I only have two. Or I reported I only made $20,000 this year and I actually made $50,000,” Thornton said. “They think of those forms of cheating, the absolute blatant, extravagant forms.”
Thornton’s definition of cheating is broader, which is why she thinks 80 percent to 90 percent of people cheat on their taxes.
“The minor forms of cheating are things like, well, I can increase my charitable deduction by $200,” Thornton said. “Most people consider, quote, unquote padding their income tax reporting or shaving it off a little bit, they don’t necessarily view that as cheating.”
“I define that as cheating only because it really is.”
The AP-GfK Poll was conducted March 20-24, 2014 using KnowledgePanel, GfK’s probability-based online panel designed to be representative of the U.S. population. It involved online interviews with 1,012 adults, and has a margin of sampling error of plus or minus 3.4 percentage points for all respondents.
Respondents were first selected randomly using phone or mail survey methods, and were later interviewed online. People selected for KnowledgePanel who didn’t otherwise have access to the Internet were provided with the ability to access the Internet at no cost to them.