What if the American people could vote on which parts of the national budget should be cut and which should see increased spending? Would the results be different from what Congress and the president are doing? Apparently so, according to an unusual survey conducted by the Program for Public Consultation.

 

The study presented 2,043 Americans with 31 major components of the budget, told them the current funding for each one and asked them if they would increase or decrease funding for each component.

 

In pure dollars, respondents hacked away most at the budgets for defense, cutting $109.4 billion, intelligence ($13.1 billion), military operations in Afghanistan and Iraq ($12.8 billion), veterans’ benefits ($6.7 billion) and the federal highway system ($4.6 billion).

 

In terms of percentage, the survey consensus was to cut funding for the wars in Afghanistan and Iraq by 25.6%, cut support for strategically important countries (such as Afghanistan, Pakistan and Egypt) by 23.0% and cut subsidies to large agricultural companies by 20.9%.

 

On the other hand, the respondents wanted to add to the budget in certain areas, specifically job training (130%), energy conservation and renewable energy (110%), financial aid to college students (92%) and subsidies to farms smaller than 500 acres (66.7%).

 

The survey also asked respondents about ways to trim the deficit by raising taxes. Americans did show a willingness to raise taxes—for the wealthy. Eliminating the “don’t know”s, the median hike in the income tax of individuals earning more than $1 million a year was 20%. For those earning $200,000 to $1 million it was 10% and for those earning $75,000 to $200,000 5%.

 

The consensus of respondents also supported raising taxes on corporations (by 8%) and alcohol (25 cents per ounce), adding a new tax on sugary drinks of ½ cent per ounce, and increasing the tax rate for “carried income” to the rate of the tax on wages. Carried income is the money hedge fund managers make when their firm turns a profit.

 

A large majority—77%—supported returning estate taxes at least to the 2009 levels of 45% for estates worth more than $3.5 million rather than the recently passed change of lowering the rate to 35% and only taxing estates worth more than $5 million.

 

A majority of respondents also approved of raising the tax rate for capital gains and dividends at least to the 20% rate they were before the Bush tax cuts, and completely eliminating tax deductions reserved for oil and gas companies.

 

There was one oddity in the survey. Respondents were asked what percentage of the federal budget goes to foreign aid and what percentage should go to foreign aid. The median answer was that 15% of the budget is allocated to foreign aid and that that figure should be reduced to 5%. In fact, the current percentage is only 1%.

-David Wallechinsky

 

American Public Shows How it Would Cut the Budget Deficit (Program for Public Consultation)

Survey: American Public Shows How it Would Cut the Budget Deficit (Program for Public Consultation) (pdf)

Americans Overwhelmingly Support Raising Taxes for Millionaires (by Noel Brinkerhoff, AllGov)