Economists Opposed to Taxmageddon
The National Association for Business Economics (NABE) recently surveyed 236 business economists on fiscal policy issues, including the looming Taxmageddon and Obamacare. The results of the survey reflect a clear divide on taxes between economists and Democrats in Congress.
According to the survey, a majority of respondents support the extension of “payroll tax cuts, current marginal income tax rates, and current tax rates for dividends and capital gains for most or all taxpayers through 2013.” Furthermore, between 35 and 45 percent favor the permanent extension of income, dividends, and capital gains at their current rate.
On the issue of tax reform, respondents advocated a plan akin to that of Romney’s that broadens the tax base by reducing or removing tax deductions and credits.
When questioned on deficit reduction, respondents showed a preference towards spending cuts with over 40 percent supporting a plan that reduces “the deficit only or mostly through spending cuts.”
The survey also revealed some interesting results regarding the panel’s opinion on Obamacare. For instance, almost 60 percent believed it would result in fewer employers providing health care coverage to their employees. This is not a good sign for an Act that is supposed to have the opposite effect by increasing employee coverage.
Provided Obamacare is not repealed, roughly three-quarters of respondents expect health care costs to grow as a percentage of GDP in the coming decade.
The survey is indicative of the fact that the majority of experts see tax hikes as a grave mistake when implemented during a recovery. Democrats in Congress should take note of the experts’ opinion on Taxmageddon and oppose all tax hikes.