Sur­vey: Deficit cuts re­quire less spend­ing, more taxes

The Washington Times Daily - - Business -

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.

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