How should President Bush reduce the federal budget deficit? Arthur Andersen & Co. posed a version of that question to some 21,000 owner-managers of companies in the $1-million to $120-million range. Predictably, a majority (55%) opted for cuts in existing programs, but a sizable 44% favored some combination of spending cuts and tax increases. And that's from people who supported Bush over Dukakis by 84% to 9% (with 7% undecided at the time of the survey). What if taxes have to be raised? A surprising 29% said they'd find a national sales or value-added tax least unpalatable.
How to generate additional revenue?
The least unpalatable tax increases:
Excise tax 51%
National sales or 29value-added tax
Personal income tax 12
Corporate income tax 8