Stimulating The Economy: Middle Income Tax Cuts, Deficit Reduction And Spending Seen Most Effective

July 11, 2012, 4:00 PM GMT+0

(Week of 7/7/2012) Americans think many approaches to stimulating the economy could help, even if they may seem contradictory. In the latest Economist/YouGov Poll, nearly two-thirds of Americans think a middle class tax cut would be effective, but around half also think that reducing the deficit or increasing government spending on infrastructure and job creation would help, too.

Two approaches are seen as the least effective: reducing environmental regulations, seen as stimulating the economy by just 32%, and cutting taxes on the wealthy, likely to be the focus of Congressional debate this fall, which only 28% think would work. Just 27% of those with incomes of $100,000 or more say tax cuts for the wealthy would stimulate the economy; about as many in that income bracket think that action would slow the economy.

Support for specific economic solutions is often party-based. Democrats think raising the minimum wage, government spending on infrastructure, and cutting taxes for the poor would help; Republicans don’t. Republicans think reducing the deficit and limiting environmental regulations would help; Democrats don’t. 44% of Republicans but only 19% of Democrats say tax cuts for wealthy Americans would help. Both parties agree on the possible efficacy of middle class tax cuts, however.

Economist/YouGov poll archives can be found here

Photo source: Press Association