Just as many American adults think an across-the-board tax cut would help the economy as the number who favor Congress passing a financial rescue plan, according to a new Rasmussen Reports national telephone survey.

Thirty-nine percent (39%) favor each option, and 22% are undecided in the survey taken Monday and Tuesday nights (see crosstabs). On Monday the House voted down the $700-billion taxpayer-backed rescue plan prompting the biggest drop in the stock market in 21 years.

Forty percent (40%) are more worried that Congress will pass a new version of the bailout bill rather than doing nothing. A virtually identical number--39%--worry more about Congress doing nothing.

Investors are similarly divided on the worry question, but 47% of those with a financial stake in the markets think a new bailout plan is best for the economy. Thirty-six percent (36%) like an across-the-board tax cut more.

While 42% of voters say Congress’ failure to pass an economic rescue plan will hurt their personal finances, 11% believe a lack of congressional action will help their finances, and 33% say it will have no impact on them whatsoever.

Republicans are generally more skeptical of the bailout plan and its overall impact than Democrats.

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The Senate may vote as early as today on a new version of the bailout plan. Bush Administration officials, congressional leaders and both major presidential candidates insist a plan is necessary to stabilize the troubled U.S. economy.

Supporters of the plan say the government needs to buy up bad debt for resale when economic conditions improve which, in turn, will free up credit for average Americans. Opponents fear the risk to taxpayers and the unprecedented level of government involvement in the free market.
A separate survey taken Monday night found voters are evenly divided over whether Congress should take action to help the troubled financial industry or just let Wall Street work out its problems on its own.

The House defeated the bailout plan on Monday by a vote of 225 to 208. Voting against the plan were two-thirds of House Republicans, and a great deal of editorial criticism has been directed at these naysayers, who were largely reacting to pressure from their constituents to oppose the bailout.

Sixty-eight percent (68%) say members of Congress should do what their district voters want versus what they think is right, while 21% take the opposite position.

At the same time, 74% believe most members of Congress are more concerned about their allies in Washington than the voters in their district. Only 16% think congressmen think of the voters at home first.

But then just 26% of adults have even a little bit of confidence that the nation’s policy makers know what they’re doing when it comes to the current problems on Wall Street.

Fifty-one percent (51%) think politicians are more interested in gaining additional power than in fixing the economy anyway.

In the new survey, 52% of GOP voters are more worried about Congress passing a new version of the rescue plan, and 31% are more fearful of the legislators doing nothing. By contrast, a plurality of Democrats (44%) worry that Congress will take no action, but 34% fear a new version of the plan more. Among undecided voters, 40% worry most about Congress doing nothing while 36% take the opposite tack.

Fifty-three percent (53%) of Republicans believe an across-the-board tax cut will help the economy more than a new version of the bailout plan, but just 28% of Democrats agree. Half of Democrats (50%) like a rescue plan better, as do 28% of GOP voters. Undecided voters give the edge to a tax cut 39% to 34%.

Women and Democratic voters are more worried than men and Republicans about the impact on their personal finances if Congress fails to enact a bailout plan.

See survey questions and toplines. Crosstabs available for Premium Members only.