Tax Issues: National Public Opinion

Tax Issues: National Public Opinion

98-552 GOV
CRS Report for Congress
Received through the CRS Web
Tax Issues: National Public Opinion
May 28, 1998
Kevin Coleman
Analyst in American National Government
Government Division
Congressional Research Service ˜ The Library of Congress

ABSTRACT
This report provides a sample of public opinion questions concerning the current tax system,
the Internal Revenue Service, and proposals for tax reform. It will be updated as new poll
results become available. The report is for the use of Members as they consider legislation
currently before the 105th Congress.

Tax Issues: National Public Opinion
Summary
Public opinion surveys conducted in the last 13 months have asked respondents
about such tax issues as the current tax system, the Internal Revenue Service (IRS),
and proposals for tax reform. Eleven tax bills are currently before the 105 Congress:
th
H.R. 853, H.R. 1040, H.R. 2001, H.R. 2685, H.R. 2971, H.R. 3097, H.R. 3620, S.
593, S. 1040, S. 1555, and S. 1673. The House intends to begin consideration of H.R.
3097 during the week of June 15 , 1998.
th
Many of the surveys asked about tax fairness. In a November 1997 survey, a
majority of respondents (54%) said they believed that most Americans pay their fair
share in taxes, while 43% believed that most do not pay their fair share. Responses
to a related question in a different survey showed that 49% of those polled felt they
pay more than their fair share in taxes, 2% felt they pay less than their fair share, and
47% believed the amount they pay is about right. In an April 1998 survey, 67% of
those polled believed the federal tax code is "too complex," while 28% disagreed.
On the issue of tax reform, respondents were asked in a February 1998 survey
whether they prefer a flat tax or a progressive tax. Forty-seven percent preferred "the
traditional progressive tax system" and 43% favored a flat tax. A similar question
from an October 1997 poll asked respondents to identify which plan for collecting
federal taxes they preferred: 46% of respondents favored a flat-rate income tax with
no deductions, 25% preferred the current system, 16% favored a national sales tax,
and 13% answered "not sure." Two related questions from a CNN/USA Today poll
asked whether respondents would support or oppose eliminating deductions for
charitable contributions and for home mortgage interest in order to establish a flat tax.
Fifty-three percent opposed eliminating the deduction for charitable contributions,
while 43% favored the proposal. Fifty-four percent opposed eliminating the mortgage
interest deduction and 42% favored its elimination to establish a flat tax.
The Internal Revenue Service received mixed reviews in opinion surveys. In an
October 1997 poll that asked whether respondents had a favorable or unfavorable
opinion of the job the IRS is doing, 66% answered "unfavorable" and 20% answered
"favorable." A March 1997 poll found that 59% thought the IRS was doing a "good
job," 10% believed the agency was doing a "very good job," 18% said the agency was
doing a "poor job," and 7% answered "very poor job."
A number of polls included questions about tax issues in relation to the federal
budget. In answer to a question about how surplus money in the budget should be
used, 37% of respondents said it should be used to strengthen the Social Security
fund, 28% suggested it be used to increase funding for education, 17% answered that
it should be used to reduce the national debt, 12% answered "reduce taxes," and 1%
said it should go to another social program. A September 1997 poll asked whether
respondents preferred a budget that reduced taxes more or one that makes smaller
reductions in programs, even if it meant taxes could not be reduced as much: 61%
answered that they preferred smaller reductions in programs, while 32% said they
wanted a budget that reduced taxes more.

Contents
General Attitudes About Taxes and Tax Issues . . . . . . . . . . . . . . . . . . . . . . . . . 2
Tax Complexity and Tax Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Internal Revenue Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Budget Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
List of Tables
Table 1. Do Most Americans Pay Their Fair Share in Taxes? . . . . . . . . . . . . . . . 2
Table 2. How Would You Feel if You Heard Someone Had Not Paid All the Taxes
They Owed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Table 3. Do You Think Most People Cheat on
Their Federal Income Taxes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Table 4. Do You Feel You Pay More Than Your
Fair Share in Federal Income Taxes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Table 5. Which Form of Taxation Do You Dislike Most? . . . . . . . . . . . . . . . . . . 4
Table 6. Which Party Is Better at Holding Taxes Down? . . . . . . . . . . . . . . . . . . 4
Table 7. Is the Republican Party's Approach on Taxes and
Spending in the Mainstream? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 8. Is the Democratic Party's Approach on Taxes and
Spending in the Mainstream? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 9. Who Does Your Taxes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 10. Is the Tax Code Too Complex? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 11. Which Would Be More Challenging—Filling Out
Your Tax Return or Setting Up Your Personal Computer? . . . . . . . . . . . . 7
Table 12. Do You Favor Eliminating All Income Taxes and Establishing a National
Sales Tax? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 13. Do You Favor a Flat Tax or a Progressive Tax System? . . . . . . . . . . . 8
Table 14. Do You Favor a National Sales Tax, a Flat Rate
Income Tax, or the Current Tax System? . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Table 15. Would You Support Eliminating the Deduction for Charitable
Contributions in Order to Establish a Flat Tax? . . . . . . . . . . . . . . . . . . . . . 9
Table 16. Would You Support Eliminating the Deduction for Home Mortgage
Interest in Order to Establish a Flat Tax? . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Table 17. What Kind of Tax Cut Do You Favor—Cutting
Income or Social Security Taxes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Table 18. Do You Have a Favorable or Unfavorable View of the IRS? . . . . . . 10
Table 19. What Kind of Job Do You Think the IRS Is Doing? . . . . . . . . . . . . . 11
Table 20. Would You Favor or Oppose Abolishing the IRS
and Establishing a New Tax Agency? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Table 21. Does the IRS Have Too Much Power? . . . . . . . . . . . . . . . . . . . . . . . 12
Table 22. Which of the Following Issues Needs the Greatest
Attention from the Federal Government? . . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 23. Would You Prefer a Budget That Reduces Taxes More
or One That Makes Smaller Reductions in Programs? . . . . . . . . . . . . . . . 13

Table 24. How Should Surplus Money in the Budget Be Used? . . . . . . . . . . . . 13
Table 25. What Should Be the Top Priority for Any Surplus
Money in the Budget? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 26. What Should the Government Do with a Budget Surplus? . . . . . . . . 14

Tax Issues: National Public Opinion
This report summarizes public opinion on the Internal Revenue Service (IRS)
and a variety of tax and budget issues, based on responses to a selected sample of
opinion polls taken since March 1997. The report is divided into four sections. The
first section includes polling questions on general attitudes about taxes and tax-related
issues. The second section includes questions on tax complexity and tax reform. The
third section includes questions about the Internal Revenue Service, and the fourth
section includes questions on the federal budget issues.
Public Opinion Polls
Public opinion polls are conducted on most important public policy issues, and
the results are routinely reported and analyzed in the media. Most polls are limited to
presenting respondents’ beliefs and attitudes at a fixed point in time (when the poll
was conducted), and they necessarily rely on a method that formulates often
complicated concepts and issues as questions that can be posed to those being
interviewed. Despite these limitations, public opinion polls provide insight into public
perceptions of important issues and may help those who consult them to frame issues
and consider how much public support exists for various ideas and solutions.
The polls cited in this report, like all public opinion polls, are subject to possible
bias or error for a variety of reasons having to do with design or execution. Among
some of the most common types of error are: coverage errors, sampling error,
measurement error, specification error, and non-response error. Coverage errors
result when the sample does not represent the population it seeks to represent,
because segments of the population were left out of the sample or were included in
the sample but should not have been. A poll that intends to represent the views of the
electorate (eligible voters), but that includes ineligible voters in the sample, would
contain coverage error. Sampling error, commonly referred to as a “margin of error,”
is introduced because the sample represents only a fraction of the population studied.
It is the potential difference, calculated mathematically, between the result from the
sample and the result that would occur if the entire population were surveyed.
Measurement error occurs when the question is not properly devised and, as a
consequence, does not measure what it purportedly seeks to measure. Non-response
error occurs when a sizeable portion of the sample does not participate in the survey.
The views of this segment of the population cannot be represented in the results of the
poll.1
The survey questions included in this report have been drawn from the database
of the Roper Center for Public Opinion Research at the University of Connecticut.
The Roper Center's Public Opinion Online (POLL) database contains 250,000 records
1 For a more detailed explanation of potential error in surveys, see Robert M. Groves,
Survey Errors and Survey Costs (New York: John Wiley & Sons, 1989).

CRS-2
from surveys conducted since 1936. It is updated bi-weekly and includes surveys by
Gallup, Harris, Roper, Hart, Teeter, Yankelovich, Market Opinion Research,
Associated Press, Research & Forecasts Opinion Research Corporation, National
Opinion Research Center, ABC, CBS, NBC, CNN, The New York Times, The
Washington Post, The Wall Street Journal, USA Today, Los Angeles Times,
Newsweek, Time, and U.S. News and World Report.
Survey research data is available on a wide variety of public policy topics.
Members of Congress or congressional staff who require a detailed search on a
specific topic should contact CRS for further assistance.
General Attitudes About Taxes and Tax Issues
Table 1. Do Most Americans Pay Their Fair Share in Taxes?
"Under the current tax system, do you think most Americans pay their fair share in taxes, or
do most Americans not pay their fair share?"
Yes, most pay fair share
54%
No, most do not
43
No opinion
3
Gallup Organization for the Cable News Network and USA Today. [The results are based on
a telephone poll of 1,019 adults nationwide between Nov. 21 and 23, 1997.]
Table 2. How Would You Feel if You Heard Someone Had Not Paid All
the Taxes They Owed?
"How would you feel if you heard that someone had not paid all the income taxes they owed?
Would you be very upset, just annoyed, would you approve, or wouldn't you care"
Very upset
31%
Just annoyed
45
Would approve
2
Wouldn't care
20
Don't know/refused
2
Princeton Survey Research Associates for Pew Research Center. [The results are based on a
telephone poll of 1,762 adults nationwide between Sept. 25 and Oct. 31, 1997.]

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Table 3. Do You Think Most People Cheat on
Their Federal Income Taxes?
"From what you know, do you think most people cheat on their federal income taxes, or don't
you feel that way?"
Yes, most people cheat
38%
No, don't feel that way
50
Not sure
12
Yankelovich Partners Inc. poll for Time/CNN. [The results are based on a telephone poll of
1,018 adults nationwide on March 11 and 12, 1997.]
Table 4. Do You Feel You Pay More Than Your
Fair Share in Federal Income Taxes?
"Do you feel you pay more than your fair share in federal income taxes, less than your fair
share, or is the amount you pay about right?
More than fair share
49%
Less than fair share
2
About right
47
Don't know/no answer
2
CBS News Poll. [The results are based on a telephone poll of 1,347 adults nationwide
between April 2 and 5, 1997.]

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Table 5. Which Form of Taxation Do You Dislike Most?
"Which of the following forms of taxation do you dislike the most—income taxes, sales taxes,
property taxes, or estate taxes?"
Income taxes
22%
Sales taxes
11
Property taxes
11
Estate taxes
7
Capital gains tax (volunteered)
10
Hate all taxes (volunteered)
31
Not sure
8
Zogby International Poll. [The results are based on a telephone poll of 948 likely voters nationwide
in February 1998.]
Table 6. Which Party Is Better at Holding Taxes Down?
"Which political party, the Democrats or the Republicans, do you trust to do a better job
on—holding taxes down?"
Democrats
45%
Republicans
44
Both (volunteered)
2
Neither (volunteered)
6
No opinion
2
Yankelovich Partners Inc. poll for Time/CNN. [The results are based on a telephone poll of
1,011 adults nationwide between April 8 and 10, 1998.]

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Table 7. Is the Republican Party's Approach on Taxes and
Spending in the Mainstream?
"When it comes to its approach on fiscal issues, such as taxes and spending, would you
describe the Republican Party's position on these issues as generally being in the broad
mainstream, or is its position outside the mainstream?"
In the mainstream
47%
Outside the mainstream
39
In between/depends
4
Not sure
10
Hart and Teeter Research Companies for the Wall Street Journal. [The results are based on
a telephone poll of 2,004 adults nationwide between Sept. 11 and 15, 1997.]
Table 8. Is the Democratic Party's Approach on Taxes and
Spending in the Mainstream?
"When it comes to its approach on fiscal issues, such as taxes and spending, would you
describe the Democratic Party's position on these issues as generally being in the broad
mainstream, or is its position outside the mainstream?"
In the mainstream
48%
Outside the mainstream
38
In between/depends
5
Not sure
9
Hart and Teeter Research Companies for the Wall Street Journal. [The results are based on
a telephone poll of 2,004 adults nationwide between Sept. 11 and 15, 1997.]

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Tax Complexity and Tax Reform
Table 9. Who Does Your Taxes?
"Do you do your own taxes, does someone do your taxes for you without cost, or do you pay
someone to do your taxes?"
Do own taxes
32%
Some else without cost
14
Pay someone
51
Not sure
3
Yankelovich Partners, Inc. poll for Time/CNN. [The results are based on a telephone poll of
1,018 adults nationwide on March 11 and 12, 1997.]
Table 10. Is the Tax Code Too Complex?
"In your view, is the tax code for federal income taxes too complex, or don't you feel that
way?"
Too complex
67%
No, don't feel that way
28
Not sure
5
Yankelovich Partners, Inc. poll for Time/CNN. [The results are based on a telephone poll of
1,011 adults nationwide between April 8 and 10, 1998.]

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Table 11. Which Would Be More Challenging—Filling Out
Your Tax Return or Setting Up Your Personal Computer?
"For you personally, which would be more challenging: filling out your own federal tax return,
or setting up your own personal computer?"
Filling out tax return
34%
Setting up own personal computer
49
Both
6
Neither
8
Don't know/refused
2
Luntz Research Company for Merrill Lynch. [The results are based on a telephone survey of
1,000 adults nationally and 444 likely technology users in September 1997.]
Table 12. Do You Favor Eliminating All Income Taxes and Establishing
a National Sales Tax?
"What is your reaction to a proposal to eliminate all federal income and payroll taxes and
replace them with a new national sales tax of twenty-three percent? Is this something you
strongly favor, somewhat favor, somewhat oppose, or strongly oppose?
Strongly favor
10%
Somewhat favor
23
Somewhat oppose
22
Strongly oppose
32
Not sure
13
Hart and Teeter Research Companies for the Wall Street Journal. [The results are based on
a telephone poll of 1,005 adults nationwide between Jan. 17 and 19, 1998.]

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Table 13. Do You Favor a Flat Tax or a Progressive Tax System?
"Please tell me which of the following two statements comes closest to your opinion about
income taxes. I prefer a flat tax where everyone would pay the same tax rate. This would be
a fairer and simpler system. I prefer the traditional progressive tax system in which people
with higher incomes pay at a higher rate. This helps insure that those best able to pay will pay
more."
Flat tax
43%
Progressive tax
47
Neither
7
Not sure
3
Zogby International Poll. [The results are based on a telephone poll of 948 likely voters nationwide
in February 1998.]
Table 14. Do You Favor a National Sales Tax, a Flat Rate
Income Tax, or the Current Tax System?
"If you could choose one plan to collect all federal taxes, which federal tax plan would you
prefer...a national sales tax, a flat rate income tax with no deduction, or the current graduated
income tax with deductions?"
National sales tax
16%
Flat-rate income tax with no deduction
46
Current graduated income tax with deductions
25
Not sure
13
Fox News/Opinion Dynamics Poll. [The results are based on a telephone survey of 902
registered voters nationwide on Oct. 1 and 2, 1997.]

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Table 15. Would You Support Eliminating the Deduction for Charitable
Contributions in Order to Establish a Flat Tax?
"A tax system in which all Americans pay the same percentage of their income in taxes is
often referred to as a flat tax. In order to have a flat tax system, would you favor or oppose
eliminating each of the following deductions from the federal tax code—the deduction for
contributions to charities and religious institutions?
Favor
43%
Oppose
53
No opinion
4

Gallup Organization for the CNN and USA Today. [The results are based on a telephone poll
of 1,004 adults nationwide between Nov. 21 and 23, 1997.]
Table 16. Would You Support Eliminating the Deduction for Home
Mortgage Interest in Order to Establish a Flat Tax?
"A tax system in which all Americans pay the same percentage of their income in taxes is
often referred to as a flat tax. In order to have a flat tax system, would you favor or oppose
eliminating each of the following deductions from the federal tax code—the deduction on
interest for home mortgages?"
Favor
42%
Oppose
54
No opinion
4
Gallup Organization for the Cable News Network and USA Today. [The results are based on
a telephone poll of 1,004 adults nationwide between Nov. 21 and 23, 1998.]

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Table 17. What Kind of Tax Cut Do You Favor—Cutting
Income or Social Security Taxes?
"If the decision were made to cut taxes this year, would you prefer to reduce income tax rates
for all taxpayers or to reduce Social Security and Medicare payroll taxes?
Reduce income tax for all
64%
Reduce Social Security/Medicare
payroll taxes
25
Both equal
2
Neither
4
Not sure
5
Hart and Teeter Research Companies for the Wall Street Journal. [The results are based on
a telephone poll of 1,005 adults nationwide between Jan. 17 and 19, 1998.]
Internal Revenue Service
Table 18. Do You Have a Favorable or Unfavorable View of the IRS?
"Do you have a favorable or unfavorable opinion of the job the Internal Revenue Service
(IRS) is doing?"
Favorable
20%
Unfavorable
66
Don't know
14
Fox News/Opinion Dynamics Poll. [The results are based on a telephone survey of 902
registered voters nationwide on Oct. 1 and 2, 1997.]

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Table 19. What Kind of Job Do You Think the IRS Is Doing?
"Regardless of how you personally fell about the Internal Revenue Service, or IRS, what kind
of a job do you think it is doing collecting the nation's taxes? Do you think it is doing a very
good job, good job, poor job, or a very poor job?
Very good job
10%
Good job
59
Poor job
18
Very poor job
7
Not sure
7
Yankelovich Partners Inc. poll for Time/CNN. [The results are based on a telephone poll of 1,018
adults nationwide on March 11 and 12, 1997.]
Table 20. Would You Favor or Oppose Abolishing the IRS
and Establishing a New Tax Agency?
"Would you favor or oppose abolishing the Internal Revenue Service (IRS) and building a new
tax agency from the ground up?"
Favor
57%
Oppose
28
Not sure
15
Fox News/Opinion Dynamics Poll. [The results are based on a telephone survey of 902
registered voters nationwide on Oct. 1 and 2, 1997.]

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Table 21. Does the IRS Have Too Much Power?
"Do you think the Internal Revenue Service (IRS) has too much power?"
Yes
81%
No
12
Not sure
7
Fox News/Opinion Dynamics Poll. [The results are based on a telephone survey of 902
registered voters nationwide on Oct. 1 and 2, 1997.]
Budget Issues
Table 22. Which of the Following Issues Needs the Greatest
Attention from the Federal Government?
"Which one of the following seven issues do you think needs the greatest attention from the
federal government at the present time...improving education, guaranteeing the financial
stability of Social Security and Medicare, reducing crime, reducing the budget deficit,
reducing taxes, strengthening the economy, and reforming the way political campaigns are
financed?"
Improving education
25%
Guaranteeing the financial stability of
18
Social Security and Medicare
Reducing crime
14
Reducing the budget deficit
12
Reducing taxes
10
Strengthening the economy
8
Reforming the way political campaigns
3
are financed
All equally (volunteered)
9
None of these (volunteered)
1
Hart and Teeter Research Companies for NBC News/Wall Street Journal. [The results are
based on a telephone poll of 2,013 adults nationwide between Dec. 4 and 8, 1997.]

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Table 23. Would You Prefer a Budget That Reduces Taxes More
or One That Makes Smaller Reductions in Programs?
"Which of these federal budgets would you prefer—a budget that reduces taxes more, even
if that means larger reductions in programs, or a budget that makes smaller reductions in
programs, even if that means taxes are not reduced as much?"
Reduces taxes more
32%
Makes smaller reductions in
programs
61
Not sure
7
Hart and Teeter Research Companies for the Wall Street Journal. [The results are based on
a telephone poll of 2,004 adults nationwide between Sept. 11 and 15, 1997.]
Table 24. How Should Surplus Money in the Budget Be Used?
"If you had to choose, how would you prefer surplus money in the budget be used? Would you
prefer it be used to reduce taxes, or to strengthen the Social Security fund, or to reduce the
national debt, or to increase funding for education, or to increase funding for another social
program?"
Strengthen Social Security fund
37%
Increase funding for education
28
Reduce national debt
17
Reduce taxes
12
Increase funding for another social
program
1
Other
1
Don't know (volunteered)
4
Los Angeles Times Poll. [The results are based on a telephone poll of 1,314 adults nationwide
between Jan. 29 and 31, 1998.]

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Table 25. What Should Be the Top Priority for Any Surplus
Money in the Budget?
"Which of these do you think should be the top priority for any surplus money in the federal
budget—cut federal income taxes, put it toward reducing the national debt, strengthen the
Social Security system, or increase spending on other domestic programs?"
Social Security
47%
Reduce national debt
23
Cut income taxes
17
Domestic programs
10
No opinion
2
Washington Post Poll. [The results are based on a telephone poll of 1,390 adults nationwide
between Jan. 28 and 31, 1998.]
Table 26. What Should the Government Do with a Budget Surplus?
"We have some more specific questions about what the government should do with a budget
surplus. As I read a list of various proposals, please say whether you think each on should be
a top priority for using the surplus, a high priority, a low priority, or not a priority at
all—cutting federal income taxes for most Americans?"
Top priority
22%
High priority
42
Low priority
28
Not a priority
6
Don't know/refused
2
Gallup Organization for the Cable News Network and USA Today. [The results are based on
a telephone poll of 1,004 adults nationwide between Nov. 21 and 23, 1997.]