Survey: Deficit cuts require less spending, more taxes
NEW YORK | Economists say a combination of higher taxes and lower spending is the best way to reduce the federal budget deficit.
A survey on economic policies conducted by the National Association for Business Economists released Monday also forecast that short-term interest rates would remain at current levels for at least another year.
In an election year, the growing U.S. federal deficit has drawn heightened partisan debate in Congress over spending and taxes with not much resolution in sight. The deficit is on pace to exceed $1 trillion for the fourth straight year.
An overwhelming majority in the NABE poll — 87 percent — said higher taxes should be considered along with less spending to reduce the federal budget deficit. More than 70 percent also backed major tax reform, and more than two-thirds also favored the extension of payroll tax cuts through 2012.