Gallup Poll Shows Most Americans are Unhappy with Income Tax Payments as Refunds Shrink

According to a recent Gallup poll, a majority of Americans are dissatisfied with the amount of federal income tax they paid this year, reaching a two-decade high.

A recent Gallup poll shows a majority of Americans are dissatisfied with the amount of federal income tax. (Photo: CNN)

Gallup Poll Results

The Gallup poll involved over 1,000 individuals and was conducted during most of April. The findings emerge amidst a heated debate regarding whether the wealthiest individuals and corporations are shouldering their fair share of taxes.

Despite the absence of direct income tax increases by Congress in recent years, 51% of respondents in the Gallup poll expressed discontent with their income taxes, compared to 44% last year. This figure represents the highest level of dissatisfaction recorded since 1997 when Gallup began assessing public sentiment on income tax bills.

Conversely, 46% of participants of the Gallup poll believed they paid a fair amount of income tax, aligning with the mood reported in 1999 when the same percentage felt similarly. Additionally, 60% of those surveyed stated that their federal income taxes were too high, a sentiment not observed since 2001.

According to MarketWatch, many Americans experienced smaller income tax refunds this year compared to the previous year. This reduction can be attributed in part to the expiration of pandemic-related tax credits, as explained by tax experts.

The combination of these factors likely influenced public sentiment towards taxes, with political affiliation also potentially playing a role. Notably, only one-third of Republicans considered their income taxes fair this year, a significant decline from 63% in 2020 during the Trump administration.

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Experts Highlight Reasons for Gallup Poll Results

Jeff Jones, a senior editor of the Gallup poll, suggested that Republicans are more frustrated with President Biden in office compared to when President Obama was in office.

Biden campaigned on raising taxes for corporations and households earning over $400,000 annually, but proposals such as a billionaire’s minimum tax or higher top tax rates have yet to become law.

Experts have highlighted that the expiration of the 2017 Trump-era tax cuts in 2025 looms as a critical tax-policy issue. The tax overhaul reduced income tax brackets and enhanced popular features of the tax code, including child tax credits and standard deductions.

However, some of these cuts were scheduled to expire while others were permanent.

The broader economy and recent tax season may also contribute to public sentiment on taxes. Jones suggested that inflation may be pushing some individuals into higher tax brackets due to salary increases meant to keep pace with inflation.

Furthermore, the average tax refund decreased by over 7% compared to the previous year, reaching slightly over $2,800, according to IRS data through May 12.

Lawrence Zelenak, a tax law professor at Duke University, attributes the current public discontent primarily to the disappearance of temporary pandemic-related tax relief. In 2020, an estimated 60% of households had no federal income tax liability due to reduced income and increased cash assistance.

By 2022, this figure decreased to approximately 40%, which aligns more closely with pre-pandemic levels. The diminished refunds during 2022 can be attributed to the expiration of temporary provisions such as the child tax credit and charitable donation deductions.

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