CATO Institute Poll: Americans Want Congress to Pair Tax Cuts with Significant Spending Reforms
A recent Cato Institute and YouGov poll, highlighted in a blog post by Cato’s Adam Michel, reveals that Americans across the political spectrum support pairing tax cuts with significant spending reductions. The poll found 81 percent of Americans feel they cannot afford higher taxes next year and 85 percent of Americans support extending the 2017 tax cuts if it prevents an average tax increase of $1,000 to $2,000 per person. Americans want permanent tax cuts because they would support working families and help grow the economy, but it must be paired with enforceable spending reforms to make the federal government more fiscally responsible.
WORD ON THE STREET
Excerpts from Cato’s Adam Michel:
Taxes Are Already Too High and Permanent Tax Cuts Are Important
Most Americans (55 percent) think their taxes are too high, a view also shared by more than half of Democrats. The same portion of respondents believe they pay more than their fair share in taxes when considering “what you get from the federal government.” A full 81 percent of Americans say they can’t afford higher taxes next year.
Americans, regardless of political affiliation, want permanent tax cuts. Seventy-five percent agree with the statement, “the 2017 tax cuts should be made permanent because businesses and families need stability of the tax code to plan for the future.” And 74 percent agree that “tax cuts should be made permanent because taxes are already too high.” More than half of “very liberal” respondents also agreed with both statements.
Pair Tax Cuts with Spending Cuts
Some in Congress argue that “the 2017 tax cuts should expire because it won’t be worth the federal spending cuts necessary to make them permanent”—61 percent of Americans disagree with that statement.
With an annual budget deficit of $2 trillion, 64 percent of respondents want to primarily cut spending to balance the budget.
When given more options to finance federal deficits, the most popular options are auditing federal spending and cutting federal spending. The two least popular options are borrowing money and raising taxes across the board.
More than three in four Americans think the federal government spends too much, and they report that 59 cents of every dollar is wasted, a share that has risen considerably over time. Even Democrats offer that they would cut 32 percent of spending to balance the budget.
Americans understand that spending cuts are also pro-growth, with 78 percent reporting that cutting spending will mostly help or have no impact on the economy—a sentiment supported by 63 percent of Democrats. Only 15 percent of all respondents think the massive increase in federal spending over the last decade has improved their quality of life.
THE BOTTOM LINE
In the most historic election of our lifetime, Americans resoundingly elected President Trump and a Republican-led Congress to reverse course on the failed policies of the last four years and requiring the government to live within its means. The poll reinforces what conservatives have known: tax relief is crucial, but it must be coupled with real, lasting spending reforms. Congress has a clear mandate to pursue pro-growth, fiscally responsible policies that strengthen the economy without mortgaging our future.
After the last four years, Americans are feeling the strain of inflation and an expanding federal budget. Americans expect Congress to enact fiscally responsible, pro-growth policies that include both tax relief and meaningful spending reforms. It’s time to act.
The House and Senate are pursuing tax and budget reforms through the reconciliation process. The Cato Institute and YouGov poll show a clear message from Americans: extend the 2017 tax cuts permanently and significantly reducing federal spending.
MORE FROM THE HOUSE BUDGET COMMITTEE
Read Chairman Arrington’s statement on unlocking reconciliation HERE.
