With Tax Day looming and Americans still figuring out the new tax code, WalletHub has released its 2020 Taxpayer Survey as well as its yearly report on the States with the Highest & Lowest Tax Rates in order to help people better understand this confusing time of year.
Not only is it a confusing time of year, but it can also be stressful. Tax season can be stressful for the millions of Americans who owe money to Uncle Sam. Every year, the average U.S. household pays more than $9,000 in federal income taxes, according to the Bureau of Labor Statistics.
Tax Rates in California (1=Lowest; 25=Avg.):
- 11th – Overall Effective State & Local Tax Rate
- 13th – Income Tax
- 16th – Real-Estate Tax
- 27th – Vehicle Property Tax
- 33rd – Sales & Excise Taxes
2020 Taxpayer Survey
- 30% of people say making a math mistake as well as not having enough money are their biggest Tax Day fears, edging out identity theft (21%) at the top of the list.
- 37% of people would move to a different country for a tax-free future. 26% would get an “IRS” tattoo and 19% would stop talking for 6 months.
- 34% of people think charities would make the best use of their tax dollars, outnumbering by nearly 2.5 times people that trust the federal government the most with their taxes.
- The average red-state tax rate is 10.67%, just under the average blue-state rate of 10.93%.
Democrats vs Republicans
Areas of Agreement:
- Both agree that rich people do not pay their fair share in taxes.
- Both agree that poor and middle class people do pay their fair share in taxes.
- Both agree that their tax rates are too high.
Areas of Disagreement:
- Most Democrats say corporations should pay higher taxes rates than consumers; most Republicans don’t agree.
- Democrats say healthcare should be the biggest priority in the 2020 elections, followed by taxes. Republicans vote for national security, healthcare and immigration ahead of taxes.
You may read the full report by clicking here.
- Uncle-Sam: Image by kalhh from Pixabay