Gavin Howe
The Republican and Democratic parties have vastly different visions for how to remake the US tax code. Both parties have proposed changes to tax rates and exemptions as a significant part of their campaigns, with the knowledge that these are likely to be popular with voters. However, the reality is that most Americans are unlikely to see their federal taxes increased, regardless of which party is in power. While the parties have different approaches to taxation, it is difficult to say which has the most tax laws on the books as this is dependent on a variety of factors, including the control of Congress and the priorities of the administration.
| Characteristics | Values |
|---|---|
| Party with the most tax laws on the books | Democrats |
| Democrats' views on tax laws | Critical of the fairness of the current tax system; Support raising corporate taxes; Support raising taxes on upper-income households |
| Republicans' views on tax laws | Mixed views on the fairness of the current tax system; Divided on raising corporate taxes; More positive views on taxes during the Trump years due to lower taxes from the Tax Cuts and Jobs Act of 2017 |
| Impact of tax laws on public opinion | Majority approval across all partisan groups for increasing taxes on corporations; Views differ substantially by party, with larger gaps among upper-income individuals |
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What You'll Learn
Republicans' views on taxes
Republicans and Democrats have vastly different visions for how to remake the tax code. While Republicans believe in balancing spending cuts with tax cuts across the board, Democrats believe in cutting taxes for the middle and lower classes while raising them for the upper classes.
In general, Republicans support tax cuts and believe that budget surpluses have caused Americans to be overtaxed, threatening their financial prosperity and hindering the country's economic growth. They believe in encouraging saving and investments by implementing a tax credit for investments. They also want to limit the top marginal rate, believing it punishes those who have worked hard and invested well. They wish to increase the child tax credit and make the Research and Development tax credit permanent. They also believe in encouraging saving and investments by implementing a tax credit for investments.
However, despite their support for lowering taxes, Republicans do believe that tax cuts or tax incentives without any balancing spending cuts are detrimental to the economy. They also believe that taxes should be simple, transparent, flatter, and fair. They dislike the convoluted nature of the current tax code and the fact that it is nearly impossible for the average American to understand it. They oppose retroactive taxation and taxes that set the classes against one another, and divide Americans. They do not support the taxation of religious organizations, charities, and fraternal benevolent societies, and also believe that contributions to these organizations should be tax-deductible.
In terms of corporate taxes, Republicans are divided. Some support higher taxes on businesses and corporations, while others favor rates staying the same or being lowered. They also support tax cuts for the ultra-wealthy, with provisions like the deduction for "pass-through businesses" and higher estate and gift tax exemptions. These cuts often come at the expense of funding for vital government functions and services.
Overall, Republican views on taxes vary, but they generally support lower taxes and believe in balancing spending cuts with tax cuts. They also believe in encouraging saving and investments and want to simplify the tax code to make it more transparent and fair for Americans.
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Democrats' views on taxes
Democrats and Republicans have vastly different views on taxes and how to remake the tax code. While Republicans' views on taxes are variable and sensitive to circumstances, Democrats' views are more stable and insulated from external factors.
A wide majority of Democrats (84%) say corporate taxes should be raised, with 59% saying they should be raised a lot and 25% saying a little. This view is held by most Democrats across income levels, although those with the lowest family incomes (less than $30,000) are somewhat less supportive. Democrats are also critical of the fairness of the current tax system, with 71% describing it as not too fair or not at all fair.
During the 2020 campaign, Joe Biden's platform included the Inflation Reduction Act, which raised some taxes on businesses and corporations, although not individual tax rates on most Americans. Kamala Harris, the Democratic nominee and current Vice President, has a thinner tax record, with limited involvement in tax policy during her tenure in the Senate. However, her platform includes proposals for unspecified payroll tax cuts and a new America Forward tax credit for companies in "innovative fields" engaged in "retooling or rebuilding existing facilities."
Over the past decade, Democrats have enacted dozens of new taxes and fees, generating $77.5 billion in revenue. While this has resulted in higher costs for certain expenses like housing, groceries, and gas, Democrats argue that these taxes are necessary for funding government programs and addressing issues such as income inequality and climate change.
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Americans' views on corporate taxes
Democrats generally support raising corporate taxes, with 84% saying that corporate taxes should be increased, and this sentiment is shared across income levels. Lower-income Democrats are less supportive of raising corporate taxes compared to those with higher incomes. Among Republicans, opinions are more divided, with 50% supporting higher corporate taxes, 26% favouring the status quo, and 19% advocating for lower taxes. Notably, Republicans with higher family incomes are less supportive of raising corporate taxes than those with lower incomes.
The perception of tax fairness also differs between the two parties. While most Americans have doubts about the fairness of the federal tax system, Democrats are more critical, with 71% describing it as unfair. In contrast, Republicans hold more mixed views, with 48% considering the system moderately or very fair, and 51% deeming it unfair.
The partisan divide is also evident in views on personal tax burdens. Upper-income Republicans are more likely to believe they pay an unfair amount in taxes (68%) compared to Democrats in the same income bracket (47%). However, among lower-income individuals, similar proportions of Democrats (45%) and Republicans (48%) feel they pay too much in taxes.
It is worth noting that Americans' views on corporate tax rates have shown modest changes over the years. Republicans have become more likely to express support for lower tax rates, with 32% now advocating for reduced corporate tax rates, an increase from previous years.
Additionally, the impact of corporate taxes on the economy and jobs is a subject of debate. Some argue that high corporate tax rates have led American companies to relocate their employees overseas, while others propose raising the minimum tax rate to prevent companies from exploiting tax havens.
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Americans' views on tax fairness
A 2025 Gallup poll found that 46% of Americans considered the income tax they pay to be fair, while 51% deemed it unfair. This shift in opinion can be attributed to various factors, including Americans paying more in federal income taxes, inflation, the health of the US economy, and the influence of political beliefs.
Political affiliation plays a significant role in shaping Americans' views on tax fairness. Historically, Republicans' opinions have shifted notably based on the incumbent president's party. During years with a Republican president, an average of 59% of Republicans viewed their taxes as fair, compared to 44% during Democratic administrations. Democrats' opinions, on the other hand, have been relatively stable over the years.
Income levels also impact Americans' perceptions of tax fairness. Upper-income (62%) and middle-income (60%) Americans are more likely than those with lower household incomes (47%) to perceive their tax burden as unfair, considering what they receive from the federal government. Additionally, a majority of Americans (61%) favor raising tax rates for high-income households, reflecting a desire for greater tax fairness.
The complexity of the federal tax system is another concern for Americans. About half of the population (53%) finds the system's complexity bothersome, an increase from 47% in 2021. This complexity contributes to the perception that the tax system is unfair, especially when combined with the belief that some corporations and wealthy individuals are not paying their fair share.
When it comes to corporate taxes, there are notable differences between Democrats and Republicans. A wide majority of Democrats (84%) support raising corporate taxes, while Republicans are more divided, with 50% supporting higher taxes, 26% favoring the same rates, and 19% wanting them lowered.
In summary, Americans' views on tax fairness are diverse and influenced by various factors, including political affiliation, income levels, the complexity of the tax system, and the perception of fairness in tax contributions across different income groups. While some Americans believe that the federal tax system is fair, a significant portion finds it unfair, particularly those from higher income brackets and those with differing political affiliations.
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Trump's tax policies
During his presidency, Donald Trump's tax policies included the imposition of tariffs on a range of imports, which led to a trade war and had significant economic impacts. In 2025, Trump signed a presidential memorandum to increase US tariffs in retaliation for the tariffs of other countries. These reciprocal tariffs were applied to nearly every US trading partner and resulted in a universal tariff of 10%, with higher rates for specific countries, such as a 50% tariff on Chinese goods.
The Trump administration also imposed tariffs on steel, aluminum, washing machines, solar panels, and goods from China, impacting over $380 billion in trade and resulting in a tax increase of nearly $80 billion. These tariffs, along with those on derivatives, currently account for $2.7 billion of the $79 billion total. Additionally, under Trump, the United States Trade Representative investigated China's unfair trade practices, leading to further tariffs.
The White House under Trump also targeted tax-exempt statuses, tax breaks for sports team owners, and treating carried interest as regular income. The administration used the debt ceiling deadline to push Trump's tax bill through Congress. While some of his policies, like the steel and aluminum tariffs, reduced costs for some US businesses, they also led to higher prices and negative economic impacts. The overall effect of Trump's tax policies contributed to an S-word adjacent economy, with concerns about stagflation.
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Frequently asked questions
The Democrats generally support raising taxes for large businesses and high-income households, while the Republicans are more divided on the issue, with some supporting lower taxes and others remaining neutral. The Democrats have also enacted new taxes and fees that have generated revenue for the government but may have made life more expensive for citizens. On the other hand, Republicans are generally more positive about their taxes and have supported tax cuts during the Trump years.
The public's views on taxes differ based on their political affiliation. Democrats tend to be critical of the fairness of the federal tax system, while Republicans hold more mixed views. Lower-income Republicans are more likely to support raising taxes on large businesses and high-income households than their upper-income counterparts. Overall, Americans' views on raising taxes on large corporations and high-income households have changed only slightly in recent years, with a slight decrease in support.
Both major-party presidential candidates have made changes to the tax code a significant part of their campaigns. They often focus on broad goals and may not address practical or political challenges to implementing their tax plans. Candidates know that voters generally dislike taxes, so they emphasize tax cuts or exemptions. Republicans are more likely to react positively to tax cuts, while Democrats may be less enthusiastic.
