Topics
Commonsense Budgeting to Reduce Washington’s Record Debt
Middle Class Tax Relief: Letting Families Keep More of Their Own Money to Raise Their Children
Commonsense Budgeting to Reduce Washington’s Record Debt
Most of us have to live by a simple rule: we can’t spend more than we take in. So when Washington spends more money than it takes in, that’s not fair to hardworking Americans. While many are concerned about our record national debt, YG Network’s polling and focus groups show that Americans place job creation as their top priority. By growing our economy, creating jobs, and restraining Washington’s overspending, we can make government work for the American people once again.
YG Network Poll Data:
- Twice as many respondents said that the “economy and jobs” is the most important economic issue (38%) as those who said the “debt and deficit” was the most important economic issue (20%). (March poll)
- Conservatives: 35% econ/jobs, 30% deficit & debt
- Moderates: 40% econ/jobs, 18% deficit/debt
- Liberals 39% econ/jobs, 7% deficit/debt
- The May poll confirmed these findings, with 41% saying “growing the economy and creating jobs” and only 19% saying “reducing the deficit and debt” was most important.
- Conservatives: 39% econ/jobs, 29% deficit & debt
- Moderates: 45% econ/jobs, 18% deficit/debt
- Liberals: 39% econ/jobs, 8% deficit/debt
- 85% are concerned about the federal budget deficit and increasing national debt, with 52% saying the deficit and debt are hurting current economic growth and job creation (May poll).
- Conservatives: 93% debt, 68% hurting jobs
- Moderates: 85% debt, 49% hurting jobs
- Liberals: 75% debt, 34% hurting jobs
- 65% support a federal budget plan that balances the budget in 10 years that raises revenue through tax reform, while just 22% prefer a federal budget plan that raises taxes for new spending (May poll).
- Conservatives: 80% reform, 12% more taxes
- Moderates: 67% reform, 18% more taxes
- Liberals: 45% reform, 40% more taxes
YG Network Focus Group Data:
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“If you grow the economy and increase jobs, the economy will resume itself [improving our nation’s federal budget and debt issues].”
– Swing participant, Manassas -
“We are going from crisis to crisis with no long-term strategy.”
– Swing participant, Manassas
YG Network Dial Tests:
Respondents believe that job-creation must be the number-one priority, but they are concerned that spending is out of control. In their view, more taxes means a bigger government, and a bigger government means less accountability in government, which is something that they are seeing more and more of.
| WHAT: | WHY: |
| Budgeting is important | |
| “Most of us have to live by a simple rule: we can’t spend more than we take in. But when Washington spends more money than it takes in, it’s not fair to the country, it’s not fair to young people, it’s not fair to those who are working hard to get ahead, and it’s not fair to the elderly. Creating jobs, boosting wages, and growing the economy will help pay down our national debt. So will restraining Washington over-spending.” | This really resonated with respondents. They believe that the federal government has been very irresponsible with budgeting, and they know they would not be able to run their own lives that way. |
| The consequences of our national debt | |
| “Our debt now stands at $17 trillion, up more than $5 trillion since this President took office. That is a sorry record. Over-spending and debt have very real consequences in the economy—right now—not just in the future. Debt of this magnitude also creates a national security concern, as we sell more and more American bonds to foreign governments.” | There is strong agreement among respondents that our national debt is harmful right now, not just in the future. |
| Cutting spending | |
| “The American people deserve a responsible budget with a combination of spending reductions and the right type of tax reform. And we can do this. The budget sequester, which has cut billions in spending over the past several months, shows that life as we know it in America won’t come to an end if we pare back our spending further.” | Respondents believe that government spending needs to be cut, and the cuts that occurred as a result of the budget sequester were not very harmful, as they were led to believe. |
| Returning to an orderly economy | |
| “It is a perfectly reasonable goal for us to spend the same amount of discretionary funds in the coming year as we spent five or six years ago. Indeed, a responsible budget, one that strives to get into balance within a decade, will return America to an orderly economy. It will help entrepreneurs create jobs, and provide more income for Americans who are trying to work hard, preserve the best of our traditions, and get a little ahead in life.” | Having conveyed the nature of the problem of our national debt, creating a responsible budget that strives to get us into balance within a decade becomes the solution. Respondents believe that having a balanced budget would benefit our economy. Respondents believe that rather than automatically increasing discretionary funding each year, we should roll back our level of spending to what it was a few years ago because that is one way for us to reach the goal of a balanced budget. |
| Putting Americans first / Growing the economy | |
| “Let me describe the key elements of what needs to be in a budget that puts the American people first—and not Washington first. Let’s call it the ‘fairness budget’ plan.” AND “It’s about time we put the American people first when drafting a federal budget. And as we work to get our spending under control, we must stay focused on an equally important goal: growing our economy. If we cannot restore a vigorously growing economy in America, where the fruits are widely shared, the struggles of the middle class will persist.” | This shows who the priority needs to be: the American people, not those in power. And “growing the economy” is an imperative everyone shares. |
| The social safety net | |
| “First, such a plan must protect the government services and safety nets that are so important to America’s well-being—like the protection of the most vulnerable and help for our veterans.” | Protecting the most vulnerable in our society is a key value respondents hold. They want to help those who have fallen on hard times, and they support programs that adhere to that value. They also understand that if our safety net programs are broke, we can’t help anyone. |
| The tax code | |
| “It must simplify the tax code by lowering rates and closing loopholes. That could mean, for example, putting a limit, or cap, on the home mortgage interest deduction.” | Respondents believe that our tax code is too complicated, and they would like to see it reformed. There is some support among respondents for limiting the home mortgage interest deduction on non-primary residences. (It’s important to make clear that this applies only to non-primary residences) |
| Corporate welfare | |
| “A ‘fairness budget’ must roll back corporate welfare in the energy sector, and end taxpayer bailouts of ‘too-big-to-fail’ financial institutions.” | Respondents believe that it is unfair for taxpayers to bail out companies that are very profitable or those that do not act responsibly. |
| The military | |
| “Recognizing the importance of guarding the safety and liberty of Americans, it must support our men and women in uniform, maintaining the necessary spending to ensure they have the resources they need to carry out their missions, and to care for their families.” | Respondents believe that guarding our safety and liberty is a very important function of government, and they greatly respect those who put themselves in harm’s way to defend our nation. |
| Obsolete programs | |
| “Government bureaucracies often outlive their usefulness, which is why a ‘fairness budget’ will start to eliminate obsolete programs.” | Respondents believe that there is a lot of waste in government, and some programs can be consolidated into other programs or eliminated. |
| Medicare | |
| “For younger workers hoping for a secure retirement, for people approaching retirement age, and for our seniors, a ‘fairness budget’ will protect and strengthen Medicare. Such a budget changes the direction of healthcare—away from unsustainable government spending, clearing the way for patient-centered reforms.” | This shows simultaneous concern for the seniors of today and for young people who will one day be seniors. Respondents believe that some changes need to be made to protect and strengthen Medicare. It is important to them that we keep our promise to seniors and that we provide them with the health care they need. |
| College tuition | |
| “And a ‘fairness budget’ begins to address spikes in college tuition.” | Respondents are concerned that with spikes in college tuition, college is becoming increasingly unaffordable for young people. |
| Can’t tax our way out of this problem | |
| “The truth is we can’t just tax our way out of the budget mess we’re in. Sending more money to Washington, whether it comes from your pocket or from Donald Trump’s, will not create jobs and grow the economy. It will just make the government bigger. And what we need to do is control spending. And we need to grow our economy.” | Respondents believe that spending is out of control. In their view, more taxes means a bigger government, and a bigger government means less accountability in government, which is something that they are seeing more and more of. |
Middle Class Tax Relief: Letting Families Keep More of Their Own Money to Raise Their Children
The costs of things like food, energy and healthcare are going up—but wages aren’t keeping pace, and for many Americans they’re actually decreasing. It’s getting harder and harder to make ends meet, much less get ahead—and it’s getting really expensive to raise kids. Government alone can’t turn our economy around, but here’s one thing Washington could do to promote a fairer economy for the middle class: let families keep more of their own money to pay for the costs of raising their children up to age 18. We can do this by replacing the variety of small child tax-credits with a single, $4,000 credit per-child.
YG Network Poll Data:
- 58% approve of increasing the child tax credit to $4,000 per child (from $1,000), while 32% disapprove (May poll).
- Women: 57% approve
- Hispanics: 66% approve
- African Americans: 73% approve
- Conservatives: 52% approve
- Moderates: 58% approve
- Liberals: 62% approve
YG Network Focus Group Data:
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We learned through our focus groups that it’s important to inform Americans that this policy is deficit-neutral and to emphasize that it simply allows people to keep more of their own money.
YG Network Dial Tests:
Respondents told us that it is becoming more difficult to afford children. We heard that increasing the child tax credit would allow people to have more money for their families, which would help families recovering from our nation’s recent economic challenges. This scored in the mid-70s to mid-80s (on a zero to 100 scale of agreement) among both Tea Party respondents and moderate Independents.
| WHAT: | WHY: |
| Description of the issue | |
| “For generations in America, we’ve believed that almost anybody can start with next-to-nothing and make it big. Or, at the very least, they could live comfortably in the middle class. Americans believe that anyone who has the opportunity to succeed, and then works hard to fulfill their dreams, should be able to get ahead. Costs for things like food, energy, and healthcare are going up, and wages aren’t, or they’re going down. And that’s for people lucky enough to have a job. It’s getting harder and harder to make ends meet, much less get ahead. And it’s getting really expensive to raise kids. A recent survey showed that three out of every four Americans live paycheck to paycheck.” | Respondents told us that the conservative advocate appealed to families with this argument by discussing the day-to-day concerns they are encountering. This verbiage is helpful to contextualize why the child tax credit is important. |
| Expanding the child tax credit | |
| “Government alone can’t turn the economy around, but there are things it could do to promote a fairer economy for middle class Americans. Here’s one idea: Right now many middle class families qualify for various tax benefits, including dependent exemptions, a $1,000 child credit, and the child care credit. These combine to lower the typical household’s tax bill by about $1,550. Yet the Department of Agriculture estimates that it costs $13,000 each year to raise a child through age 17. That figure does not include college costs. So, $1,550 more in take-home pay doesn’t help enough. Most parents have figured out how to squeeze a penny till it screams for mercy, but wouldn’t it be nice to ease that burden a little? That’s why some lawmakers have proposed allowing families to keep more of their paychecks by replacing the variety of child credits with a single $4,000 credit per child. That way, middle class parents could keep more of their own money to pay for the costs of raising their children up to age 18. That means more money available for clothing, child care, tuition, and food. In case you’re wondering, this tax credit is not another government handout. The child tax credit is for working parents to be able to keep more of their hard-earned dollars for their families. | Respondents told us that it is becoming more difficult to afford children. We heard that increasing the child tax credit would allow people to have more money for their families, which would help families recovering from our nation’s recent economic challenges. This scored in the mid-70s to mid-80s (on a zero to 100 scale of agreement) among both Tea Party respondents and moderate Independents. |
| Lifting burdens faced by parents | |
| “Parents have taken on the awesome challenge and financial burden of raising the next generation. They’re taking care of their families, and at the same time they’re paying very high FICA taxes to support today’s seniors on Social Security and Medicare. It’s only reasonable for government to ease the tax burden of economically-stressed middle class families when they have children to raise. Those of us in the middle class should be able to keep our own money, so we can use it as we see fit: To save for our kids’ college tuition, or help pay for healthcare, or meet whatever expenses come our way. Indeed, this is a better solution than what liberals endorse. They offer the middle class more government programs. That’s not the right path. The bottom line is that a single $4,000 per child tax credit would let you keep more of your paycheck to spend on your family’s needs. Congress should implement it.” | This shows a concern about the challenges today’s American parents face. |