This is a brief summary of findings about inflation and most important personal outcomes from tax policy based on recent listening sessions with voters, and the January 7-10 survey of 1200 voters.
Outlook on the Economy and Inflation
Outlook on the economy is negative among voters overall (28-55 right direction-wrong track).
Inflation was a top concern for participants when discussing the economy, and has taken a major toll on personal finances and retirement.
Independent: Inflation is ridiculous. I could have gotten the same amount of groceries two years ago for probably 25% less.
Independent: While the stock market is going up and up and up, hitting new record highs every day, you have people struggling to make ends meet.
Republican: I think a lot of people are working and raises have gone up, but prices have gone up way more than wages are. So I think the average family can’t keep up with costs. So even though we might have close to full employment, it doesn’t matter if you can’t pay all your bills.
Voter Expectations And Personal Outcomes
Among Republicans, there is clearly an expectation that prices for household expenses like groceries and gas will decrease (63%) after President Trump takes office, rather than increase (11%) or not change (20%). However Democrats expect prices to increase (67-22-8 increase-not change-decrease), with independents being more mixed in their response (37-27-28).
Over half the electorate (53%) said they were in the category of living paycheck to paycheck. The percentage was higher among those with less than 50K in income (76%), and 1 out of 2 (51%) in the 50-100K income category.
Voters were presented with a list of outcomes from tax policy and asked them to rate them based on their importance, with 1 indicating that the outcome was not important at all and 9 indicating that it was extremely important. While each was seen as important, the top priority was helps you deal with inflation and high prices in your household budget (mean 7.52), followed by creating economic growth (7.39) and greater ability to save for the future and retirement (7.38).
Of the 11 personal outcomes from tax policy, there were more priorities to Republicans than to independents or Democrats, with 8 of the 11 ranking above a 7 among Republicans. Priority outcomes for Republicans included inflation, increase in income and saving for retirement, but also outcomes related to the economy such as making America the best place in the world to do business, competitiveness, and reducing the debt/deficit. For independents, two of the three top outcomes were personal in nature — inflation, saving for the future and retirement – and creating economic growth. The same two personal outcomes were priorities for Democrats, but their highest priority was making the wealthy and corporations pay their fair share (7.90).
For more of our Tax Tools, click here.
