Economists say US needs more taxes, spending cuts

The best way to reduce the federal deficit is through a combination of higher taxes and spending cuts, says a group of economists.

A survey of 236 members of the National Association for Business Economics says the country needs more fiscal stimulus through 2013, but by 2014 it should be time to throttle back.

A majority of the economists favor extending payroll tax cuts, current marginal income tax rates and current tax rates for dividends and capital gains for most or all taxpayers through 2013. Deep tax cuts that were passed under President George W. Bush expire at the end of December. At the center of debate: extending the cuts for everybody or just households earning less than $250,000 a year.

Source: The Associated Press