With the House preparing to consider the big reconciliation bill this week, our friends at the Winston Group have delivered some good news – turns out, the American voters support keeping taxes on Main Street businesses low and they think excess spending, not taxes, is the problem when it comes to the deficit.
According to the Winston Group:
From the electorate’s perspective, government spending is by far the bigger problem than not enough revenue coming from taxes (70-21). Independent voters also see spending as the larger problem at 68-20. Inflation is still a major concern, with almost half the electorate (49%) believing that inflation is getting worse, rather than better (30%) or not changing (18%).
Given this economic outlook, voters are opposed to a tax increase in this environment: With the country still dealing with inflation, now is not the time to raise taxes (62-25 believe-do not believe). This belief is even higher among conservative Republicans (71-17) and Republicans (68-20). Independents also believe this 58-27.
Meanwhile, efforts to raise taxes are seen as inflationary:
Additionally, tax increases on businesses are seen as leading to higher costs for consumers. 70% of the country believes that if companies have to pay more in taxes, those costs will be passed on to consumers in higher prices (70-16 believe-do not believe). This belief is consistent among conservative Republicans 73-17, Republicans 73-16, and independents 70-14. Even Democrats believe this (68-19).
Finally, what about these surveys showing voters support taxing the rich? Not so much, turns out. As in the past, Americans are very reasonable about the most anybody should pay to the Federal government:
While the preferred rate on the wealthy of 35 percent is higher than it has been in the past (here, here), it’s still well below the 40 percent or so rate we tax top earners at right now. Far from supporting higher rates, Americans support cutting them instead.
One of the comments in the Twitter thread above asked why raising individual rates would harm Main Street businesses. The answer is because nearly all businesses pay tax at the individual rates. New numbers from our friends at the Economic Policy Innovation Center show that proposals to increase rates on incomes exceeding $1 million would hit 825,000 business owners and 33 percent of all the affected income.
Main street businesses have a lot at stake in the pending reconciliation bill. Good thing for them keeping taxes low on employers is good policy and good politics. We look forward to seeing the House adopt the reconciliation package soon!