090128: Americans Oppose Economic Plan Without Tax Cuts

(Rasmussen Reports) -- Fifty-eight percent (58%) of American adults are opposed to a government economic recovery plan that does not cut taxes, according to a new Rasmussen Reports national telephone survey.

Adults are evenly divided over whether they would support an economic recovery package that includes tax cuts only - with no government spending. Thirty-seven percent (37%) favor the idea, 38% are opposed, and 25% are not sure.

Just 21% would support the opposite approach - a stimulus package with more government spending but no tax cuts.

Forty-seven percent (47%) say tax cuts will do more to stimulate the economy than new government programs while 32% take the opposite view. A plurality of Democrats say that new government spending will provide more stimulus, but most Republicans and a plurality of those unaffiliated with either political party disagree.

Fifty-one percent (51%) of investors believe tax cuts are a better economic stimulus than government spending, compared to 42% of non-investors.

The findings come amid reports that President-elect Obama is going to Capitol Hill to meet with Democratic congressional leaders in part to answer criticism of the $300-billion middle class tax cut that he is proposing as part of his overall economic recovery plan. Many Democrats are concerned that there is not enough spending in Obama's plan which now has a price tag of $775 billion. Senate Majority Leader Harry Reid has said the tab could go as high as $1.2 trillion, but Republicans are strongly opposed to that level of spending.

Overall, 44% of the nation's adults favor the "economic recovery plan proposed by President-elect Barack Obama ." Twenty-eight percent (28%) are opposed, and 27% are not sure.

Democrats favor the plan by a 73% to nine percent (9%) margin, Republicans oppose it 55% to 18%, and a plurality of unaffiliateds are undecided. An earlier survey found that 21% of all voters expect a tax cut from the Obama Administration while 29% think their own taxes will go up.

As his inauguration approaches, Obama continues to draw high ratings for the way he's handled the role of president-elect. At the same time, consumer and investor confidence in the economy continues to hover around record lows.

Americans, however, are optimistic about the economy's recovery, but most expect it to take up to five years to come back.

Seventy-eight percent (78%) of Americans say they're closely following coverage of the recovery package, including 38% who are following the news coverage Very Closely.

Fifty-two percent (52%) say a big federal government recovery plan is Very Important for the economy. Another 23% say it is Somewhat Important. A survey released earlier found that 33% believe the economy can recover on its own, but most believe an economic recovery plan is needed.

Please sign up for the Rasmussen Reports daily e-mail update (it's free)… let us keep you up to date with the latest public opinion news.

This national telephone survey of 1,000 Adults was conducted by Rasmussen Reports January 10-11, 2009. The margin of sampling error for the survey is +/- 3 percentage points with a 95% level of confidence.

RETURN TO NEWS PAGE

RETURN TO HOME PAGE