Essential Report

Effectiveness of higher income earners tax cuts at stimulating the economy

Sep 22, 2020

Q. Thinking about tax cuts which benefit higher income earners, which of the following statements is closer to your views?

  Total Gender Age Group Federal Voting Intention
  Male Female 18-34 35-54 55+ Labor Liberal + National Greens TOTAL: Other
Tax cuts for higher income earners are very effective at stimulating the economy because people will spend the additional money 21% 24% 18% 23% 28% 13% 17% 27% 12% 20%
Tax cuts for higher income earners are only moderately effective at stimulating the economy because only some of the additional money will be spent 41% 41% 40% 52% 38% 33% 36% 45% 45% 38%
Tax cuts for higher income earners are not effective at stimulating the economy because people will save and not spend any additional money they receive 38% 35% 42% 25% 34% 54% 47% 28% 43% 42%
Base (n) 1,081 539 542 338 374 369 298 460 115 104

 

  Total Household Income
  TOTAL: Lower Income

(Up to $51,999 per year)

TOTAL: Mid Income ($52,000-$103,999 per year) TOTAL: Higher Income

(More than $104,000 per year)

Tax cuts for higher income earners are very effective at stimulating the economy because people will spend the additional money 21% 18% 24% 23%
Tax cuts for higher income earners are only moderately effective at stimulating the economy because only some of the additional money will be spent 41% 34% 39% 49%
Tax cuts for higher income earners are not effective at stimulating the economy because people will save and not spend any additional money they receive 38% 48% 37% 27%
Base (n) 1,081 359 318 317
  • One in five people (21%) believe tax cuts for higher income earners are very effective at stimulating the economy. 41% think they are only moderately effective at stimulating the economy and 38% believe they are not effective.
  • Even among living in household with an annual income of over $100k, just 23% think these tax cuts would be very effective at stimulating the economy, while 49% say they would be moderately effective and 27% say they would not be effective

COVID-19 RESEARCH

Read Essential's ongoing research on the public response to Covid-19.

Sign up for updates

Receive the Essential Report in your inbox.
  • This field is for validation purposes and should be left unchanged.