Skip to comments.CBO: Fiscal cliff will mean recession, rise in unemployment (Just do nothing and let it go)
Posted on 11/08/2012 6:15:21 PM PST by tobyhill
The Congressional Budget Office offered a sobering assessment of the economic implications of plunging off the fiscal cliff Thursday, just as lawmakers prepare for a fight over taxes and spending.
If Congress and the Obama administration allow scheduled tax increases and spending cuts to occur, the economy will shrink by 0.5 percent in 2013. The unemployment rate would soar to 9.1 percent up from 7.9 percent today.
Senate Finance Committee Chairman Max Baucus (D-Mont.) asked for the report and said the findings are another reminder of the need to find an alternative to the tax increases and spending cuts that make up the fiscal cliff.
The consequences of inaction will deliver a dramatic, short-term blow to the economy, Baucus said in a statement. We need to build a bridge over this fiscal cliff. We need to work together Republicans and Democrats on a solution that provides some certainty to American families and businesses, while also bringing down our deficit and debt.
The report largely echoes earlier CBO projections about the fiscal cliffs impact.
An aide for House Ways and Means Committee Chairman Dave Camp (R-Mich.) said the report confirms that raising taxes on all taxpayers will result in fewer help wanted signs hanging in the windows of businesses across the country.
(Excerpt) Read more at politico.com ...
Voters asked for this. Let them have what they voted for.
It’s not important. Vaginas,illegals and faux empathy are what matters. 4 dead Americans in Benghazi? No match for an Obamaphone. Get your priorities in order. A new day has dawned in Amerika.
ahhh..but voters don’t care about those things
The repiublicans will cave but the great unsaid here is that this fiscal pain would right the deficit and in that sense would be an enormous boost to our economy.
Because duh just spending more and more, and not taxing anyone to pay for it, is the real “fiscal cliff”.
All Republicans need to say is that Obama won. The burden of providing the leadership on any compromise rests on his shoulders.
But the MSM has gone all out today to try and pin the responsibility 100% on Boehner.
Oh what are you complaining about they legalized pot “for the children”. And they will hire more bipolar teachers to rape your kids. I don’t know why everyone is always beating up on democrats here. /s
Funny how Polico and the other MSM types never really raised this as a campaign issue. Yeah, it was mentioned, but all of a sudden it’s this crisis... after the campaign.
By allowing the 2003 Bush tax cuts to retire, taxes will be increasing the bottom rate from 10% to 15% and the 20% bracket to 25%.
Raising the 10% bracket to 15% represents what percentage of increase? (Hint: The correct answer is NOT 5%)
To those moving from the 10% bracket to 15%, their taxes will be increased by 50%!!
Raising the 20% bracket to 25% represents what percentage of increase? (Hint: The correct answer, again, is NOT 5%)its s a full-blown 25% increase in taxes
Finally, raising the 35% bracket to 39% represents what percentage of increase: (Hint: The correct answer is NOT 4%)thats roughly an 11% increase in taxes.
Time for the repubs to play the divide and conquer game.
Play the producers against the non producers.
Let's see who wins.
How about this? Cut social programs back so the dependents get only what they NEED to live without working. A minimal place to live, canned goods like many taxpayers have to eat, and coupons for thrift store clothing. Why not have THEM do some of the "fair share" to help this country?
If their comfortable life wasn't so comfortable, they'd be tax payers in no time. If they WANT more than we give them, they'll get a job.
The cut backs would save billions over night. The savings would be huge, and the dependents wouldn't be harmed by it - just inconvenienced.
Cut taxes for the working class big time. If the working class has more to spend, they'll buy. When they buy, businesses produce. The more businesses produce, the more they hire. All those on welfare would be able to find work. The whole nation would become productive. The economy would boom like it's never boomed before.
A booming economy would pay off that deficit in no time.
In other words, how about REAL change. Instead of paying and rewarding people NOT to work, how about paying and rewarding those who DO work instead?
Let’s see. 16 trillion in Federal debt, trillions more in state and local government debt, excessive dollar printing, unfunded entitlements, ongoing monumental deficit spending ,a bizarre unchecked anti capitalist EPA spewing regulations, a health and job killing Obamacare ( a left wing twofer) and high taxes and low productivity. The barbarian Obama crowned by the decadent and demented. The new trendy term is “financial cliff.” Good comic term to describe the Obama clown parade rushing toward the precipice with their tattered “Its Bush’s fault” banners fluttering.The country chose a vapid fool to lead it and will suffer the consequences. The Republicans simply do not have the political power to influence the outcome. It would actually be good politics to step aside.
Screw `em. The voters sent a powerful message.. instead of getting government out of the way and opening up opportunities for economic growth and prosperity.. they chose to be parasites, expecting productive citizens to lavish them with a lifestyle of leisure.
Amerika is nothing more than a version of France with crappy architecture, rampant crime and fat, slovenly people. It`s just a landmass to me right now.
Sorry about the `tude, all... I`m not particularly happy with this formerly great country`s voting populace these days.
I say let it happen. We’re at this point due to Obama’s crap leadership and lack of economic understanding. Boehner should refuse to raise taxes, period. And insist on spending cuts. If Obama doesn’t agree. Let it burn down. Only a crap President would leave the country so vulnerable.
Agreed. Obama needs to present what he wants....in detail.
The libs voted for it, that’s what they want. Run off the cliff full speed. Let them own it.
Everyone else just brace for impact.
Local rag Editorial chimed in with saying it’s now time for everybody in DC to get past the partisanship of the Election and work together for the good of the country.
they then went on to say that now is the time for Republicans to start getting along with Obama
Bwahahahahahahaha...the Libs own the outcome...whatever.
I agree, let it happen
WRONG. The tax payers have no one to represent them. When was the last time a candidate vowed to end or drastically cut back welfare to NEEDS only? Instead, they add to the goodies every time. Even the Republicans.
Why vote if no one will save you? Taxes will still go up. They always do. Regulation will be added. It always is. Freedoms will be lost. They always are. It doesn't matter to the hard working average Joe who wins. He knows he's going to get screwed anyway.
There's no one to represent the hard working American citizen anymore. We're not lost. Our government is.
“on a solution that provides some certainty to American families and businesses, while also bringing down our deficit and debt.
Democrats...lol. They’re all just skanky, fat, lying pigs.
Millions of tax payers are being used as slaves to support the democrat base. All the welfare base does everyday is lay around and breed.
The tax payers have no one to speak for them, so they don't vote. Why bother? They'll still have to go to work everyday to support the thousands of new welfare kids being born that day.
NO TAX HIKES. In fact, demand a huge cut for everyone. The working class would be celebrating like never before. FINALLY! Someone who's there for us! Where do we vote????
I agree. Let it go over the cliff and be done with it.
I have reached a point where I don’t give a Fudge what they do. Either way America is screwed.We have idiots running the Government and a Muslim in the White House-—again.
“Senate Finance Committee Chairman Max Baucus (D-Mont.) asked for the report and said the findings are another reminder of the need to find an alternative to the tax increases and spending cuts that make up the fiscal cliff.”
I wonder what the alternative will be??? Maybe tax increases combined with no actual spending cuts but promises to do better in the future? How did I know?
“Play the producers against the non producers.”
We lost that battle three days ago. The non-producers had more votes.
Boner will have no effect on the imminent economic implosion no matter what he does. The only way to stop the fiscal cliff is to cut social program spending, reducing regulation, promoting domestic energy and reducing taxes. NONE OF THESE THINGS WILL OCCUR. The economy will tank whether there is a deal or not.
Boner is a useful idiot for zero and he is weakening his position everyday by alienating the conservative base. But just maybe, Boner’s stupidity will result in a conservative challenger to his speakership.
Regardless of what “deal” they hammer out it will be grossly unsatisfactory. Our budgetary problems will remain. No amount of taxation will bring us close to solvency, as no spending restraints will be implemented. The country’s fiscal demise will not come on a date of our choosing. Simply put, we will wake up one day and flames will be all around us. So you better sleep with your fire extinguisher.
“But the MSM has gone all out today to try and pin the responsibility 100% on Boehner.”
And it is only going to get worse. You are not going to believe how the lamestream media is going to crucify the GOP on not “going along with 0zer0” after his big win. It will be a rehash of GOP=Party of NO, Greedy Rich GOP, Failed Policy of Tax Cuts gave us deficits, etc. I have no faith what so ever that Boehner and McConnel won’t cave under the media onslaught, especially if the rates rise on the poor and middle class earners. The economy is most likely going to go into recession early next year, but raising taxes across the board by letting all the Bush tax cuts expire will guarantee it. This will just add to the heartless, greedy GOP smears, and the GOP will be blamed for the double dip recession, just like Bush was blamed in 2008. Bank on it.
So, the GOP will cave. If they do, I hope they at least try to salvage something. Here is what I would do. I would give 0zer0 his tax increases on those making more than $1 million. A real “Millionaire” tax, not a Millionaire tax on $200,000 which is what 0zer0 wants. I would also stipulate that every penny of projected CBO tax increase receipts go to cutting spending ACROSS THE BOARD IMMEDIATELY, no tax increases now for “future” spending cuts. That way Defense won’t be the only thing cut. This should make it about 75% Non-Defense and will hit a lot of Democrat Sacred Cows.
Lastly, I would not agree to raise the debt ceiling one penny until long term tax and entitlement reform is done. If you cut spending and raise taxes (0zer0’s balanced approach), then you should not need to increase the debt ceiling.
This gives 0zer0 some of what he wants, but it won’t do anything to turn the economy around because the Dems have already destroyed it. The GOP avoids the obstructionist, and favor the rich vs middle class label, and the Dems get saddled with the double dip recession that is inevitably coming. Then the GOP can say, we tried it you way Mr. Prez... the balanced approach, and it failed. The Dems will then completely own the recession that is coming next January.
Here's what Republicans should say (repeated here) :
Dems won and they are for raising taxes.
The Bush tax cuts expire in December and President Obama has made it a point many times that he thinks that these Bush tax cuts are bad policy and he wants them to expire. He said they destroyed the economy. He ran on that and won.
So there is nothing we can do. The people have spoken. Our hands are tied.
But we still think its bad policy to raise taxes.
Then secretly ask O how badly he needs the House to pass something.
Lastly DON"T SAY STUPID STUFF in public like challenging O or in any way acting crazy. This past congress's GOP members have a great talent for giving Obama a big LOADED gun pointed at their own heads.
On camera : Act concerned, Act worried, Plead with Obama to think of the country first.
JEEZE! Are these Rs clueless??
Time for them to start.
Let them get a dose of paying for people that don't want to work.
Let it go over the cliff.
All hell is going to break loose when the parasites go to their tax payer paid mail boxes and there's no welfare card waiting for them on the first. When the money runs out, they're NOT going to be happy.
We can't keep flushing money down the democrat toilet and expect it to produce anything other than sewage. The freebies have to stop. We simply cannot afford to support the freeloaders anymore. The democrat politicians did this to our country, so they'd better come up with a plan to fix it.
The time has come that the Court Houses in America, that give Holy Matrimony Marriage Licenses to couples, has LOST their ‘right’, and their ‘priviledge’ to extend legal, authentic, bonafide Marriage Licenses when they started giving licenses to the people of the same sex.
TO FIX THIS: Christians should boycott EN MASSE the Court House and just see how many taxes are collected in a year, and when the budget planners realize they’ve lost revenue, they’ll amend the Court House to give Civil Unions to Same Sex, and Holy Matrimony to Male/Female relationships.
Funny when George W. Bush was asked what the greatest threat to America was he responed that it was the destruction of the American family. Churches need to open a website where couples can apply On LIne for a Marriage Certificate that has been endorsed by Evangelical Churches, and bypass the Courthouse.
Yep. FORCE the democrats to cut spending and taxes. This is happening on Obomas watch. This is HIS fault. Bush is looooong gone.
I say let it go off the cliff. As the CBO stated, it would be a short term blow to the economy and would force us into a recession (one that we never left if honest). The rats don’t care the least about the tax cuts expiring or even the military cuts. What they are worried about are the social program cuts, extended unemployment insurance payments stopped, cuts to food stamps, etc. Yes, all the freebees that define their voting base. Otherwise, they will raise taxes and not reduce any spending.
The US GDP is $15 trillion. The federal government is borrowing (or creating out of thin air) $1.5 trillion per year. So it’s pumping 10% of GDP into the economy to get a measly 1% GDP growth per year. That doesn’t sound like a growing economy to me.
The Lame Stream Media and Rats will try every way to pin it on the GOP but in reality all the GOP is doing is giving the Rats what they want, letting the Bush Tax Cuts expire.
The people deserve what they voted for, let ‘em have it. Income tax rates up, Social Security withholding up, health care taxes up, capital gains up, dividends tax up, estate tax up. Voters get the government they deserve and hopefully they’ll get it hard!
Let it burn. No pain no gain.
I hope they fail. High time for our nation to be marked to market.
Some say let’s do nothing and let it go over the cliff, blaming the real culprit, Obama and his pals. But, of course, the GOP would take the blame. It will not go over the cliff. Even if our side stands firm, Obama will declare a national emergency do what he wants. He is not bound by the Constitution. Then he will be praised.
The government stayed out of the 1920 depression (the one no one talks about) and it was over in just over one year.
FDR extended the 1929 depression to 12 years by intervening!!!!!!!!!!!!!!!
Americans have betrayed their Constitution and thrown away their individual rights. America may as well just be a landmass.
all true, but it would be no contest between astrologers and the cbo
astrologers are right half the time, cbo never.
And the bridge will merely span a little further across the gap and stop where the chasm is a bit deeper...
Doesn’t matter if they do you not.
“Trends that cannot continue....won’t”
great idea..but how do you get the message to r congressmen