Posted on 05/23/2012 8:03:09 AM PDT by SeekAndFind
Tax hikes and spending cuts set to take effect in January would suck $607 billion out of the economy next year, plunging the nation at least briefly back into recession, the nonpartisan Congressional Budget Office said Tuesday.
Unless lawmakers act, the economy is likely to contract in the first half of 2013 at an annualized rate of 1.3 percent, the CBO said, before returning to 2.3 percent growth later in the year.
Canceling those tax and spending policies would protect the recovery in the short run and encourage more vibrant growth, around 4.4 percent, in 2013, the CBO said. However, unless lawmakers adopt policies that would reduce budget deficits by a comparable amount down the road, the CBO said, the national debt would continue to climb, imperiling future economic growth.
The report, “Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013,” comes as policymakers are bracing for the most consequential battle over government tax and spending policies in years. The George W. Bush-era tax cuts are set to expire on Dec. 31, along with a payroll tax cut proposed by President Obama. Meanwhile, sharp cuts are scheduled to hit the Pentagon and other federal agencies to meet a deal cut during last summer’s showdown over the nation’s debt limit.
Anxiety is growing over how the impact of those tax and spending cuts would affect the nation’s economic recovery come January, when what’s been nicknamed “taxmageddon” hits.
(Excerpt) Read more at washingtonpost.com ...
Folks, we owe the dopes in Washington a preview of how taxmageddon is gonna go down
So adjust your budgets and spending NOW as if there were no more “Bush tax cuts”
Figure out your tax liability under the obama/Reid/pelosi 2d term and live the life
We are still in a deep recession. Millions are spending their retirement and their savings now. What more can we tolerate before we firmly agree that this current King Obama empire of communists is finish America off.
Not sure how we’re gonna do that seeing as how we’ve cut our own family budget so drastically in the past few years. I guess it means we’re going to go from one movie every six months, or one new clothing item a month, to ABSOLUTELY NO movies, NO eating out at restaurants, NO new clothes, and NO more discretionary spending.
Gee, this will be SO great for business!
It’s sad sometimes, even now, to see retailers offering every trick in the book to get people to spend - offers galore, discounts, special sales. What are they going to do now — give it away for free?
Sad that our leaders in government won’t do the right thing to save this country.
/johnny
Why not? They could always make it up on volume.
“We are still in a deep recession.”
***
Thank you. I’m so tired of hearing some “expert” say the recession is over. It’s not over, never was over and it’s just getting worse.
Zer0 wants a recession, justification for lots more borrowing.
All part of taking down the country.
Thank a liberal
Agreed. We are still in a deep recession. Or stalling like a 747.
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%)it’s 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%)it’s roughly an 11% increase in taxes.
Agreed. We are still in a deep recession. Or stalling like a 747.
This is a serious well DUH.
As bad as it is though I would actually like to see it happen since the Bush cuts are the prime reason that so many pay no tax at all. Within the Bush cuts are the seeds of our own destruction... no consequence, no ownership by far too many people with the vote. The rats were the only ones to capitalize on it... the pubbies shot themselves in the head and all the rest of us as well and got not a damn thing in return.
We Conservatives are a small voting block, but since Romney is probably going to lose in a very close election, we are an ESSENTIAL voting block to the RNC.
If the RNC wants to win the 2012 National Presidential and Congressional, they must have our full support.
We impressed the RNC with our 2010 efforts, but the RNC has done NOTHING to put the values of our 89 Warriors into effect.
We now hold the balance of power, IF WE INSIST ON AN OPEN CONVENTION.
Without an Open Convention the GOP-E will choose weak Candidate Romney to lose to Obama, just like they did with lame-brain McCain in 2008.
If the RNC overrules their own stupid Primary Rules, then there is the POSSIBILITY that the Delegates will choose a stellar Conservative Dark Horse that we can promote with vigor to topple Dictator (in his own mind) Obama.
Ponder these ideas, chat with others, and let’s visit again on this unique opportunity to not only beat Obama, but slaughter Obama and his Marxist ideas in a massive election Republican Landslide.
Even on the VERY slim chance that Romney squeaks by Obama in November, the Federal problems we have today will be worse in 4 years with Romney as POTUS.
If the RNC wants to win this election, they need us. Let us bring that fact to their attention by a vigorous, grass-roots Campaign for an OPEN Convention.
What say all of you?
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