Home » Blog, Health Financing News » In Economic News, November Jobs Report Shows Growth despite Hurricane Sandy, Most Americans Want Tax Increase for Higher-Income Households in Deficit Reduction Package

In Economic News, November Jobs Report Shows Growth despite Hurricane Sandy, Most Americans Want Tax Increase for Higher-Income Households in Deficit Reduction Package

The U.S. Department of Labor released the November jobs report today, and the news was largely positive overall. The economy produced 146,000 new jobs, bringing the unemployment rate down from 7.9% to 7.7%. While these figures do not indicate robust growth in the labor market, the gains are notable given the expectation that the effects of Hurricane Sandy would have a considerable negative impact on these numbers.

In other positive jobs news, an article in Forbes reports that Apple and GE have announced that they are bringing manufacturing jobs from abroad back to the U.S. GE stated that it is making the move because it creates production efficiencies through closer alignment of design and manufacturing, which reduces costs by shortening the production timeline. Moreover, the evolving nature of manufacturing may contribute to this trend, given changing energy and labor costs and rapidly developing technologies.

As deficit reduction negotiations continue between President Obama and Congress, a new report from Democracy Corps, a nonprofit organization that conducts public opinion research, outlines Americans’ priorities for a deficit reduction package as a part of a deal to avoid the “fiscal cliff.” Americans largely support increasing taxes to reduce the deficit, with around two thirds of voters supporting this position, and 40% feel that at least half of deficit reduction should result from increased revenue. Further, a majority (52%) would like to see the sequester, or “fiscal cliff,” either postponed or canceled.

With regard to specific tax increases, a large majority of U.S. voters, approximately three in four, would like to see taxes increase for households with incomes above $1 million. In fact, more than two thirds would find a deficit-reduction agreement unacceptable if it did not raise taxes on high-income households.

More than two in three voters supported imposing a minimum tax on overseas profits to reduce firms’ ability to avoid taxes abroad, and nearly nine in ten voters (89%)¬†felt that negotiating for lower prescription drug prices from pharmaceutical companies was an acceptable way of reducing the deficit. Roughly two thirds (65%) also supported cutting subsidies to oil companies, agribusiness, and multinational corporations.

In sum, these findings indicate that voters wish to see revenues raised as a part of the fiscal cliff negotiations, and they overwhelmingly favor raising taxes on high-earning households and cutting subsidies for corporations.

Click here to see the full Democracy Corps report.

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