1. Winning the Battle for Revenue and Investments
HART
RESEARCH A S O T E C I
Winning the Battle for Revenue and Investments
Nationwide Survey Among 1, Voters Conducted October 25-30, 2013; M.O.E. +/-3.1%
for
11028
Jan 2013 – 10840

2. Overview of Findings
A debate framed in terms of how much to cut federal spending means playing on Republicans’ turf. Avoid this trap by going on offense on tax fairness: increasing revenue from the wealthy and corporations.
Voters reject a cuts-only approach to the budget, and strongly support revenue from wealthy/corporations.
Public says replace at least half of sequester cuts by closing corporate tax loopholes and ending tax breaks for wealthy.
Voters want job creation in budget equation, not singular focus on deficit.  But public still desires deficit reduction and limiting spending.
Little public support for reducing high-end or corporate tax rates as part of tax reform. 

3. In each pair, which budget plan do you prefer?
Public Wants a Mix of Revenue and Spending Cuts, Not a Cuts-Only or Revenue-Only Budget
In each pair, which budget plan do you prefer?
Budget that increases tax revenue from the wealthy and corporations and also cuts spending
Budget that cuts spending, with no tax increases
+17
Budget that increases tax revenue from the wealthy and corporations, with no cuts in spending
Q.7ab
-13
Budget that cuts spending, with no tax increases

4. Which budget plan do you prefer?
Public Wants a Mix of Revenue and Spending Cuts, Not a Cuts-Only Budget
Which budget plan do you prefer?
Revenue/ Cuts
56%
74% 57% 33%
23% 45% 27% 40%
Cuts
Only
39%
21% 38% 61%
73% 47% 69% 52%
Revenue/ Cuts
67% 69% 59% 54%
50% 61%
55% 58%
62% 49% 55% 63%
Cuts
Only
27% 27% 32% 38%
46% 32%
40% 38%
35% 45% 39% 33%
All voters
Democrats Independents Republicans
Republicans: Tea Party Non-Tea Party Men Women
2014 swing voters
Moderates Sen. Battleground States Red State/Dem Senator
Men Women
White non-college grads White college grads
Northeast South Midwest West
Q.7a col 168

5. In each pair, which budget plan do you prefer?
Voters Want Budget to Raise Revenue from Wealthy and Corporations – Especially by Closing Loopholes
In each pair, which budget plan do you prefer?
Budget that increases tax revenue from the wealthy and corporations
+22
Budget that does not increase taxes on any American
Budget that closes corporate tax loopholes and limits tax breaks for the wealthy
Q.7ab
+39
Budget that does not increase taxes on any American

6. Americans Want Congress to Focus on Both Jobs and the Deficit, Not Deficit Alone
In each pair, which better describes the budget priorities you would like Congress to follow?
Focus on strengthening the economy and creating jobs, while also tackling our deficit responsibly
+40
Focus on getting our budget deficit under control and bringing down the national debt
Focus on strengthening the economy and creating jobs
Q.5ab +7
Focus on getting our budget deficit under control and bringing down the national debt

7. Voters Favor Replacing Automatic Spending Cuts with Revenue
In each pair, which approach for dealing with the automatic spending cuts do you prefer?
Reduce the spending cuts by 50% and replace them with new tax revenue from the wealthy and corporations
+26
Allow the full spending cuts to take effect
Cancel the spending cuts and replace them with new tax revenue from the wealthy and corporations
Q.10ab, 12ac
+16
Allow the full spending cuts to take effect

8. Framing the Debate: Stopping Budget Cuts vs. Increasing Spending
In each pair, which budget plan do you prefer?
Budget that keeps federal spending at the current level
A budget that cuts federal spending on programs like education and medical research by $50 billion
+29
A budget that increases federal spending on programs like education and medical research by $50 billion
Q.7ab
-18
Budget that keeps federal spending at the current level

9. Which Sequester Cuts Most Worry the Public?
Which one or two of these spending cuts concern you the most?
Education
Military
College loans/ tuition assistance
Food safety
Medical research
Nutrition programs
Job training
Bigger Concern about Sequester
Service cuts
44%
55%
41%
33%
800,000 jobs
31%
30%
34%
Q.13ab
All Voters
Democrats
Independents
Republicans

10. Opposition to Offsetting Sequester with Entitlement Cuts
Which approach for dealing with the automatic spending cuts do you prefer?
Avoid spending cuts this year, paid for by reducing spending on Medicare and Social Security in future years
-24
Allow the full spending cuts to take effect
Which is the better way to replace the sequester spending cuts?
By eliminating tax breaks for the wealthy and big corporations
Q.11a, Q12b
By reducing spending on Social Security and Medicare in future years
+58

11. Strong Opposition to Entitlement Cuts
85% oppose asking seniors to pay more for Medicare.
83% oppose cutting Medicaid health coverage.
67% oppose reducing Social Security COLA.
Call “entitlements” by their real name: Voters favor cutting “spending on entitlements” by 17 points, but oppose cuts in "spending on Social Security and Medicare" by 65 points.

12. Strong Support for Progressive Revenue Measures
Strongly approve
Somewhat approve
Close tax loopholes to ensure corporations pay equally on foreign profits
Buffett Rule: minimum 30% rate on millionaires
End loophole for corporate meals/entertainment
End loophole letting Wall St hedge fund mgrs pay lower rate than middle class
Close loophole to avoid taxes by shifting income to offshore tax havens
End special tax breaks for oil and gas companies
79%*
71%
69%
68%
62%
Q.20ab
62%
*70% oppose lowering the tax rate U.S. corporations pay on foreign profits.

13. Use Tax Reform Revenue for Public Investment and Deficit Reduction, not Rate Cuts
How should tax revenue from closing corporate loopholes and limiting deductions for wealthy be used?
With which statement about corporate tax reform do you agree more?
55%
Democrats: "It's time to stop corporate tax dodging and invest in the U.S. again. If we close tax loopholes for corporations that ship profits and jobs offshore, we can raise billions of dollars to invest in America--making classrooms less crowded, improving roads and bridges, and making us energy independent."
Republicans: "We need a corporate tax system that ensures our companies can compete against foreign companies on a level playing field. Our tax system needs to be changed so that companies bring their overseas earnings back home to create jobs and invest in American workers. 
Reduce the budget deficit and make public investments
Reduce budget deficit and make new investments
35%
Q.21, 22b
Reduce tax rates on corporations
Reduce tax rates on corporations/wealthy

14. Democratic Message on Revenue and Services Wins Budget Debate
With which statement on the budget and taxes do you agree more?
DEMOCRATS: "It's wrong to balance the budget on the backs of the middle class by relying only on cuts to vital programs such as medical research and education. Instead of cutting cancer research, we should require millionaires to pay a tax rate as high as the middle class pays. Instead of cutting funding for schools, let's end tax breaks for corporations that send American jobs offshore. If we ask the rich and big corporations to pay their fair share of taxes, we can be fiscally responsible and protect the middle class."
REPUBLICANS: "The best way to get our economy growing again and create jobs is to reduce federal spending and bring down the budget deficit. We must not continue the irresponsible and unsustainable spending that has left us with a $17 trillion debt that threatens the future for our children and grandchildren. And the last thing we need is further tax hikes that will kill jobs and hurt our economy--we don't have a deficit problem because we tax too little, we have it because we spend too much."
53%
+13
40%
Agree much more
35%
Q.14cd
Agree much more
27%
Democrats
Republicans

15. Strongest Democratic Messages Focus on Tax/Spending Tradeoffs
Very Convincing Reason to Support Democrats’ Budget Priorities
55%
54%
50%
48%
We should end tax breaks for companies that ship jobs and profits offshore, and level the playing field for small businesses that create jobs in America.
We should close tax loopholes for large corporations that ship jobs offshore, and instead use that money to invest in jobs in America by improving our roads and bridges and rebuilding manufacturing.
Instead of cutting education funding for our children, we should ask millionaires to pay at least as high a tax rate as their secretaries.
It's better to end huge tax subsidies to oil and gas companies making record profits than to make seniors pay more for Medicare.
Weaker messages: 1) We’ve already cut $1.9 trillion and reduced deficit by half, so time to focus on jobs not just deficit (29%); 2) We need a balanced approach to deficit reduction, so for every $1 in cuts should be $1 in revenue (28%).
Q16ab

16. Very Serious Concern about Republicans’ Budget Priorities
Strongest Criticisms of GOP Hit Refusal to Raise Revenue from Wealthy/Corporations
Very Serious Concern about Republicans’ Budget Priorities
55%
54%
53%
50%
49%
We need leaders to compromise to avoid another crisis, but nearly every Republican in Congress has signed an irresponsible pledge promising that they will never vote to raise even one penny of revenue by closing tax loopholes for the wealthy and big corporations.
Republicans in Congress are proposing irresponsible new tax cuts for the wealthy and corporations, while putting the entire burden of deficit reduction on the backs of the middle class and vulnerable families.
Republicans in Congress favor giving more tax breaks to the wealthiest Americans and large corporations, while demanding cuts in services our families depend on, like college loans, nutrition assistance for seniors, and Head Start.
Republicans in Congress are breaking their promise to seniors by pushing to end the Medicare guarantee and replace it with a voucher plan that shifts costs to seniors.
Republicans in Congress are protecting tax breaks for companies that ship jobs offshore, taking jobs away from American workers and hurting our communities.
Q18ab

17. Republicans Have Much More to Fear Than Democrats from Tax Issue
Which one of these is the best reason to consider supporting the Republicans’ budget proposal?
Which one of these is your biggest concern about the Democrats' budget proposal?
Reduces federal spending
Brings down budget deficit
Doesn’t increase taxes on anyone
Increases federal spending
Doesn’t do enough to reduce deficit
Raises taxes
Q.3b, 15, 17
On taxes, voters are more concerned that the Republicans will go too far in protecting tax breaks for the wealthy and large corporations (44%) than that the Democrats will go to far in raising taxes (35%).

18. Message Conclusions
Raising revenue from wealthy/corporations is very popular -- GOP refusal to consider it reveals them as barrier to a solution.
Strong tax tradeoff messages (e.g. schools vs. Buffett rule) are powerful, especially if closing loopholes.
Establish context as threat of automatic cuts, especially in education. Democrats are preventing irresponsible cuts, not increasing spending.
Hitting the GOP: 
Irresponsible
Pushing new tax breaks & loopholes for wealthy/corporations
Refuse to raise even one penny of revenue by closing loopholes
Balancing budget on backs of middle class

19. Recommended Core Budget Message
It's wrong to put the entire burden of deficit reduction on the backs of the middle class. Republicans are proposing to cut Social Security and Medicare, but at the same time they refuse to consider raising even one penny of revenue by closing corporate tax loopholes or ending tax breaks for the wealthy. Let's ask millionaires to pay at least as high a tax rate as their secretaries, instead of cutting education, Social Security, and Medicaid. We should close tax loopholes for corporations that ship jobs offshore, and use that money to invest in jobs in America by improving our roads and bridges. If we ask the rich and big corporations to pay their fair share of taxes, we can be fiscally responsible and protect the middle class.

20. Winning the Battle for Revenue and Investments
HART
RESEARCH A S O T E C I
Winning the Battle for Revenue and Investments
Nationwide Survey Among 1, Voters Conducted October 25-30, 2013; M.O.E. +/-3.1%
for
11028
Jan 2013 – 10840

21. Additional slides are below

22. Americans Still Want Top 2% and Corporations to Pay More in Taxes
Should pay MORE in taxes
Pay the right amount in taxes
Should pay LESS in taxes
66% 20% 9%
64% 18% 11%
9% 46% 41%
Jan 2013
The richest 2%
Large corporations
The middle class
Q.3

23. Voters Want the Sequester Reduced, But Not Cancelled
In the coming year, the automatic spending cuts will reduce domestic and military spending by $110 billion if Congress takes no action. Which is the best way for Congress to deal with these automatic spending cuts?
All voters
Initial View of Automatic Spending Cuts/Sequester
Familiar with/favorable 22%
Familiar with/unfavorable 29%
Not sure/not familiar with 49%
Q.9, 8AB
Allow full spending cuts to take effect
Reduce spending cuts somewhat
Cancel spending cuts

24. Voters Favor Replacing Automatic Cuts with Revenue
In each pair, which approach for dealing with the automatic spending cuts do you prefer?
Reduce the spending cuts by 50% and replace them with new tax revenue from the wealthy and corporations
+26
Allow the full spending cuts to take effect
Revenue Offset 79% 46% 27% 13% 40%
Full Cuts 7% 28% 52% 69% 35%
Revenue Offset 63% 45% 57% 55%
59% 66%
Full Cuts 21% 34% 25% 23%
17% 20%
Democrats Independents Republicans Tea Party Non-Tea Party
Northeast South Midwest West
Swing Voters Moderates
Q.10ab,

25. Voters’ Priority Is Having Corporations Pay Their Fair Share, Not Lowering Corporate Tax Rates
With which statement about corporate tax reform do you agree more?
Democrats: "The tax system is rigged in favor of special interests against the middle class. Large companies like General Electric and Verizon pay no federal income taxes some years, while Apple avoids billions in taxes by stashing profits in offshore tax havens. It's about time big corporations started living by the same rules as the rest of us."
Republicans: "America has the highest income tax rates on businesses in the world. We need tax reform that broadens the base by eliminating loopholes, which will allow us to reduce corporate tax rates. This kind of pro-growth tax reform will make the system simpler, more fair, grow our economy, and raise more revenue."
Reduce the budget deficit and make public investments
Q.22a
Reduce tax rates on corporations
Democrats
Republicans

26. Other Criticisms of GOP Budget Priorities
Very Serious Concern about Republicans’ Budget Priorities
49%
48%
45%
Republicans in Congress demand cuts in vital investments for our future, like education, roads and bridges, and medical research, but won't ask the wealthy and big corporations to pay one penny more in taxes.
Republicans in Congress favor keeping automatic budget cuts that will eliminate 800,000 American jobs by slashing spending in areas like education, healthcare, public safety, and transportation.
Republicans in Congress have pushed the country into crisis after crisis, even a government shutdown that hurt our economy, because they refuse to ask the wealthy and big corporations to pay their fair share of taxes.
The fact that Republicans in Congress won't agree to ask the rich and big corporations to pay their fair share of taxes shows they are not really serious about reducing the deficit.
Republicans in Congress are putting our families at risk by demanding reckless cuts in programs like food safety inspections, support for police and fire departments, and medical research.
Q18ab

27. Democratic Message on Revenue, Jobs, and Services Wins Budget Debate
With which statement on the budget and taxes do you agree more?
DEMOCRATS: "Our highest priority is to create the conditions for job creation, economic growth, and prosperity built from the middle-out, not the top down. We should replace harmful automatic spending cuts with smart, balanced deficit reduction, while making essential investments in education, job training, and infrastructure to create jobs for the American people. And we should ask the wealthy and large corporations to pay their fair share of taxes, rather than hurt our communities by cutting healthcare, education, and public safety."
REPUBLICANS: "The best way to get our economy growing again and create jobs is to reduce federal spending and bring down the budget deficit. We must not continue the irresponsible and unsustainable spending that has left us with a seventeen trillion dollar debt that threatens the future for our children and grandchildren. And the last thing we need is further tax hikes that will kill jobs and hurt our economy--we don't have a deficit problem because taxes are too low, we have it because the government spends too much."
54%
+13
41%
Agree much more
35%
Q.14ab
Agree much more
29%
Democrats
Republicans

28. Democrats’ Margin is Narrower in Debate Over Sequester Alone
With which statement do you agree more on automatic spending cuts?
DEMOCRATS say the automatic spending cuts are hurting our economy by forcing cuts in education, medical research, and job training. Economists say these cuts will cost us eight hundred thousand jobs. We should replace these automatic cuts with a balanced plan of responsible spending cuts and new revenue from the wealthy and big corporations.
REPUBLICANS say the bipartisan budget caps were an important first step toward reducing wasteful spending and lowering the deficit, which is the best way to grow our economy and create jobs. Congress should keep the promise it made to limit spending, rather than bust the caps with new spending we can't afford. +8
(29% agree much more)
(29% agree much more)
Q.11a
Democrats
Republicans

29. Budget Debate Strengthens Democrats’ Position
In whom do you have more confidence to have the right approach in trying to reach a budget agreement dealing with government spending and taxes?
Initial View
Post-Messaging View
+16 among swing voters
44%
+11 +6
39%
33%
33%
Q.4, 19ab
Much more
31%
Much more
23%
Much more
23%
Much more
21%
More confidence in Democrats
More confidence in GOP
More confidence in Democrats
More confidence in GOP