Majority of Economists Say Spending Cuts Needed to Reduce Deficit, Not Tax Hikes
“The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts. ...
“The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases.”
The report echoes a statement released by 150 economists earlier this year calling on Washington to “take action immediately to eliminate unnecessary federal spending” and “prevent tax hikes” to create a better environment for private-sector job growth. And it reflects the sentiment of the American people who oppose tax hikes “in a big way,” according to US News. Republicans are listening:
- The House-passed budget would pay down our debt over time, “cut spending by trillions of dollars and encourage private-sector job creation through economic growth — without raising taxes,” wrote Speaker Boehner and Majority Leader Eric Cantor (R-VA) in USA Today;
- Republicans passed the Cut, Cap, and Balance Act to stop the spending binge that’s hurting job growth and force Washington to start living within its means; and
- As AP reported, Congress will soon vote on “an amendment to the Constitution to require a balanced federal budget.” Economist Diana Furchtgott-Roth says a balanced budget amendment is the kind of reform that “would facilitate economic growth and job creation.”
Despite the warnings of economists and objections of the American people, Democrats are pushing for higher taxes and more of the same “stimulus” that’s left us with more debt and fewer jobs. In “How Not to Grow an Economy,” the Wall Street Journal argues that the Obama Administration’s insistence on “new regulations,” “more spending and higher taxes” contributes to the uncertainty and lack of confidence holding back job growth.