Entrepreneurs Prefer Spending Cuts Over Tax Increases, Survey Finds
October 5, 2010 by Special To Personal Liberty
It looks like yet another group of Americans is joining fiscal conservatives in their call on the government to reduce deficit by cutting its spending. A new KPMG study has found that most business executives believe this is a better way to reduce public debt, as opposed to raising taxes in the midst of a weak economy.
In fact, some 60 percent of American business leaders expressed this opinion in the survey called "Paying the Bill," which was released by KPMG International, a global network of audit and tax firms. Most of the respondents suggested a reduction in defense spending and some of the welfare programs, but 33 percent also mentioned public sector pay and infrastructure projects.
P. Scott Ozanus, vice chair of KPMG, stated that these results are not surprising, but added that given the sluggish pace of economic recovery, the Federal and local governments will most likely opt for boosting tax enforcement as a means of raising revenue.
As for the main driving force behind the economic growth that has been registered since the recession officially ended last summer, approximately 41 percent of executives credit the stimulus package. However, as much as 77 percent believe consumer spending has been a key factor and 45 percent point to lower interest rates.
That said, nearly 65 percent of the nation's business leaders would prefer to see the stimulus measures stop immediately.