US business economists are split on whether the US economy should have more austerity or more stimulus as the best path forward for US fiscal policy, according to a new survey. The National Association for Business Economics in July surveyed its members on a number of policy issues, before the federal debt ceiling talks were concluded in early August. In the survey, deficit reduction was a central point of conversation, with viewpoints on both sides. Survey respondents split almost evenly on whether current fiscal policy at the time of the survey was too stimulative, too restrictive, or just about right. At the same time, about half of survey respondents indicated they would prefer fiscal policy to be more restrictive over the next two years, while a large majority said it expects fiscal policy to be more restrictive. Most panelists believe that Congress should attempt to reduce the federal budget deficit through a combination of spending cuts and tax increases. More than half (56.1%) favour reducing the deficit only or mostly through spending cuts rather than only or mostly through tax increases (6.8%). The remaining 37.1% favour equal parts spending cuts and tax increases. Nearly 40% of survey respondents believe that containing health care costs in Medicare and Medicaid is likely to be the most successful aspect of a deficit-reduction plan. A comprehensive tax reform plan that raises slightly more revenue than the current tax system also received significant support, cited by a quarter of the survey panel.