It can sure be tempting, right?
It wasn’t but a few years ago that an article came out claiming that Americans spend more on their taxes than they do housing, clothing, and food combined.
Of course, it depends on your income bracket. If 35% of your budget goes towards food, rent, and clothing, but you’re under the poverty line, you’re not paying another 35% in taxes. But, on the flip side, there are a lot of Americans paying more than that, especially the more they make.
The tax rate in the United States was at 39.6% before the recent tax reform law was passed this winter. Paying 40% of your income to the government isn’t exactly ideal for anyone, but it gets worse.
Our 7-bracket system is a nightmare to navigate. If you happen to make a little extra, receive a large gift, or have a quick side job, it can push you from the top of one bracket into the bottom of the next, increasing the rate you pay.
Do Americans Cheat?
Does this mean Americans are more likely to push the envelope by fibbing on the amount of money they made?
According to a survey conducted by Credit Karma Tax, despite heavy complaints about high tax rates and the complicated system, the vast majority of Americans do their due diligence and pay their taxes honestly.
94% of those surveyed said they never cheated on their taxes knowingly, with 6% admitting to small fibs in areas where they didn’t think it mattered much.
The survey, as a means of measuring the honesty of those surveyed, asked if they ever cheated on a significant other, their diet, or on tests. The fact that 20% admitted to cheating on a spouse, 25% on tests, and 56% on a diet reveals a lot about us, but only 6% on taxes reveals a lot about us.
“Americans overwhelmingly value honesty when it comes to filing their income taxes, even if we’re willing to cheat on our diets and other aspects of our lives,” said Credit Karma Tax spokesman Rick Chen, in an interview with Fox Business.
How did the 6% respond when asked how they cheated? Here’s what they said:
-3% of them claim they didn’t report any gambling wins.
-5% paid an employee under the table.
-5% didn’t report gifts.
-7% exaggerated on the number of dependents they had.
-7% didn’t report the income they made under the table.
As much as we hate paying taxes, there seems to come with it a sense of civic pride. We enjoy the good things that come with being an American, like having good roads, the best military in the world, great schools, and beautiful communities.
