News

The IRS has shrunk. So has public trust in tax fairness.

As this year’s Tax Day arrives, Americans are anxious about their finances – and also skeptical about whether the wealthiest taxpayers are shouldering their fair share of the burden.

Driven by new cuts enacted by Congress, many households are getting tax refunds averaging about 11% higher than last year, only to see much of the money disappear at the gas pump in higher fuel prices.

And while Americans are enjoying the new tax breaks, rising numbers of people believe they are paying more than their fair share; 60% feel that way now, up from 51% in 2019, according to the Pew Research Center.

Why We Wrote This

Taxpayers are frustrated over the perception that the wealthy are not paying their fair share. Despite government spending reductions that partially offset tax cuts, experts warn that new tax provisions will expand federal deficits.

A top frustration, according to the same poll: The feeling that some wealthy people are paying less than they should. A large majority – 4 in 5 people – said this bothers them “a lot” (61% of respondents) or “some” (another 21%).

SOURCE:

Pew Research Center

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Jacob Turcotte/Staff

Our package of charts with this article tells that tale. The frustration over fairness outweighs other big concerns, such as tax-system complexity, though that’s a big worry, too, as anyone wrestling with last-minute questions today might attest.

For the nation, the larger story is that, however little people like to pay taxes, the revenue appears to be needed. In fact, overall projected tax revenue continues to fall short of covering the rising costs of everything from national defense and interest on the debt to popular programs including Social Security. Health care entitlements are expanding in cost even as last year’s One Big Beautiful Bill Act put some curbs on Medicaid, the health insurance program for low-income Americans. Other safety net programs also faced cuts in the bill.

Despite those reductions in government spending, finance experts say the law’s larger tax cuts will expand federal deficits in the coming years.

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