As President Trump turns his attention to tax reform, the latest IBD/TIPP Poll finds that the public strongly supports the provisions he outlined in April, which include sharp cuts to corporate and individual tax rates. Trump also gets solid support for his actions regarding North Korea.
Trump's approval rating climbed in May to 39% from last month's 34%. Trump bolstered support among his base, with his job approval up 10 points among Republicans to 84%, and 6 points to 35% among independents. Among Democrats, his approval rose 2 points to 7%.
The IBD/TIPP Presidential Leadership Index — which includes poll results on favorability, job approval, and leadership — climbed 7% to 42.6, marking the first month-over-month increase since Trump became president.
"The president's recent achievements in foreign affairs have bolstered Americans' view of President Trump as a strong leader," said Raghavan Mayur, president of TechnoMetrica Market Intelligence who directs the IBD/TIPP Poll. "For instance, the airstrike against the Syrian airbase, along with Trump's handling of the situation with North Korea, have created within the public a renewed and positive sense of American leadership in the world. Also, Americans are encouraged by a number of Trump's domestic initiatives, such as his tax reform plan, his focus on job creation, and the confirmation of Justice Neil Gorsuch to the Supreme Court."
The IBD/TIPP Poll was conducted from April 28 to May 4. It includes a sample size of 904, giving it a margin of error of +/- 3.3 percentage points.
Yes On Corporate Tax Cuts
The poll found a high level of interest in Trump's tax plan, with 76% following the story closely. Among this group, the majority back each of the key provisions Trump has announced.
Fifty-five percent support his proposal to cut the corporate income tax rate to 15% from its current 35%. The current rate is higher than any other industrialized nation and has been widely cited by a burden on U.S. competitiveness. Trump would extend this lower 15% tax rate to self-owned businesses that currently pay taxes at individual tax rates.
The corporate tax cut gets majority support from every age group, and among those earning $30,000 or more. Among self-described investors, 56% back the proposal, compared with 53% who aren't investors. Politically, only Democrats oppose the cut, with just 34% for it and 64% against. Independents are split, with 49% supporting and 48% opposing; while 88% of Republicans back the lower corporate tax rate.
There is even stronger support for Trump's proposal to offer companies a one-time tax on the $2.5 trillion that corporations have parked overseas, as a way to encourage them to bring the money back into the country. The poll found that three quarters of those following the tax reform story closely back this idea, including 64% of Democrats and 73% of independents.
Yes On Individual Tax Cuts
Trump's proposed individual income tax cuts also get strong backing from those following the story. Fifty-eight percent support his plan to reduce the tax brackets from seven to three and lower the top rate to 35%. Two thirds (66%) back his proposal to double the standard deduction, including a majority (58%) of Democrats, 65% of independents, and 80% of Republicans.
Surprisingly, the public even supports Trump's plan to eliminate the estate tax. The poll found that 54% of those following the tax reform story closely support killing what some call the "death tax." That includes 53% of independents and 87% of Republicans. In contrast, 61% of Democrats want to keep the estate tax.
North Korea Concerns
The IBD/TIPP Poll also asked about the public's views on North Korea. Of those following this story closely, fully 87% believe that North Korea poses a serious threat to the U.S. and its allies. Nearly two-thirds (65%) say they would back taking military action if North Korea were to "continue its provocations and become a growing threat."
And, 54% say they approve of the way President Trump is handling this situation, including 52% of independents and 95% of Republicans. Only one in five Democrats, however, approve of Trump's actions.
Other poll findings:
- 43% are satisfied with the direction of the country, up from 39% last month.
- More than three quarters (76%) back ObamaCare's prohibition on charging the sick higher premiums than the healthy, and only 43% back the Republican's proposal to let states get a waiver from ObamaCare's community rating and essential health benefit provisions.
- Only 41% said that getting money for a border wall in the new federal budget is important.
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