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Readers of BusinessWeek Online aren't especially impressed with the latest Bush Administration tax cut -- and a majority doubt that it will be large enough to stimulate the economy much. That's a key finding from our July 22 Reader Survey.
Of the more than 1,000 readers who responded, about 67% say they're somewhat or very familiar with the provisions of the new tax law.
A little more than half regard the extra money they're getting as not very significant or insignificant. In fact, nearly 20% say they haven't noticed any extra income at all, vs. the nearly 13% who say they're getting an extra amount that's somewhat or very significant. About 19% say they'll spend any extra money they get right away, compared with 22% or so who say they'll save it for future spending.
HOW FAIR? Taken together, these responses may explain why readers generally don't expect the tax cut to pull the economy out of the doldrums. Only about 18% think the chances are good or very good that the cut will boost economic growth, while nearly 71% think the chances of that happening are either not very good or poor.
Those who participated seem well attuned to two other major issues that surfaced during the tax-package debate: Around 69% say the tax cut is pretty unfair or very unfair in the way it is being distributed among Americans of various income levels, vs. the 20% who think it's pretty or very fair.
Moreover, 72% think the tax cut is uncomfortably risky or too risky, given the country's large budget deficit at the moment, vs. the 16% who regard the tax reduction as not risky or only a little risky. Both reactions are especially interesting given that many of those who participated in the survey are in income groups that should benefit from the President's tax package: About 45% earn between $50,000 and $100,000 a year, while 30% earn more than $100,000 a year.
Here are the detailed results of the survey, which as always wasn't a scientific poll, since anyone who wished to could participate:
How familiar are you with the provisions of the new tax law?
Option
Total
%
Very familiar
275
27.23 %
Somewhat familiar
400
39.6 %
Familiar enough
187
18.51 %
Not very familiar
105
10.4 %
Not familiar at all
36
3.56 %
Not sure
7
0.69 %
Most likely, you've already noticed some change in your take-home pay as a result of the tax cut. Would you characterize the extra amount you're receiving as:
Option
Total
%
Very significant
34
3.36 %
Somewhat significant
100
9.89 %
Better than nothing
157
15.53 %
Not very significant
171
16.91 %
Insignificant
338
33.43 %
Haven't noticed any extra money
196
19.39 %
Not sure
15
1.48 %
What do you intend to do with the extra money?
Option
Total
%
Spend it on necessities
149
14.78 %
Spend it on discretionary items
51
5.06 %
Spend some and save some
152
15.08 %
Save it for future spending on necessities
145
14.38 %
Save it for future spending on discretionary items
79
7.84 %
Haven't noticed any extra money
369
36.61 %
Not sure
63
6.25 %
What do you think the chances are that the tax cut will boost economic growth?
Option
Total
%
Very good
82
8.09 %
Good
100
9.86 %
50-50
102
10.06 %
Not very good
211
20.81 %
Poor
505
49.8 %
Not sure
14
1.38 %
In terms of the benefit the Bush tax cut provides to Americans of various income levels, do you regard the tax package as:
Option
Total
%
Very fair
100
9.86 %
Pretty fair
107
10.55 %
Neither more fair nor less
74
7.30 %
Pretty unfair
164
16.17 %
Very unfair
538
53.06 %
Not sure
31
3.06 %
How would you assess the risk involved in issuing a large tax cut at a time when the U.S. is running the biggest budget deficit in its history?
Option
Total
%
It's not risky
92
9.12 %
It's a little risky
72
7.14 %
It's risky, but necessary
100
9.91 %
It's uncomfortably risky
201
19.92 %
It's too risky to do
531
52.63 %
Not sure
13
1.29 %
What's your annual income?
Option
Total
%
Less than $25,000
69
6.91 %
$25,000 to $49,999
188
18.84 %
$50,000 to $74,999
248
24.85 %
$75,000 to $99,999
195
19.54 %
$100,000 to $125,000
148
14.83 %
More than $125,000
150
15.03 %
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