Will Congress reach an accord on the fiscal cliff? A majority of small-business owners are not confident, according to a new survey of Affluent households conducted by Millionaire Corner.
A majority (58.5 percent) either “disagree” or “strongly disagree” that Congress will find a solution to avoid the fiscal cliff, the scheduled year-end tax cuts and mandatory spending cuts that many analysts fear could send the country back into another recession. This is a higher percentage of affluent investors overall, 53 percent of whom do not foresee Congress reaching a bipartisan solution.
“Business spending tightens,” proclaims a USA Today headline on Monday. The newspaper reports that executives who invest in software, equipment and office space “are pulling back, worried about how Washington will settle the standoff over deficit-reducing tax hikes and spending cuts.”
The National Association of Manufacturers projects that should a deal on the fiscal cliff not be reached, more than six million jobs could be lost, with unem0ployment surpassing 11 percent by 2014.
Half of small-business owners surveyed by Millionaire Corner in September said that the fiscal cliff is the issue they are most worried about in regard to the election next week.
Where are they looking for information about the fiscal cliff? More than half (57 percent) are logging on to the Internet, according to our survey. This is a significantly higher percentage of affluent households overall, 42.5 percent of whom are relying on the Internet as the primary news source about this issue.
Fifty-four percent of small-business owners are watching television for fiscal cliff news, a further indication that, especially regarding an issue which can have a game-changing impact on their business, they want the most up-to-date information. Forty-six percent are relying on newspapers for information, while more than one-quarter (27 percent) are turning on their radio for news and talk about the fiscal cliff.
Interestingly, about the same percentage of small-business owners (20 percent) will talk to family and friends about the fiscal cliff than will read a magazine about it (19 percent).
Again, small-business owners are relying on these news sources in greater percentages than Affluent investors overall, an indication that they have more of a vested interest in how the issue is resolved.
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