Budget office: 'Fiscal cliff' cuts, tax hikes would lead to recession

Discussion in 'News / Current Events' started by Revmitchell, Nov 9, 2012.

  1. Revmitchell

    Revmitchell
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    Austere "fiscal cliff" tax increases and federal spending cuts set for the end of the year would send the economy back into recession and cause a spike in the jobless rate to 9.1 percent by next fall, congressional budget analysts said Thursday.

    The tax and spending changes, which a lame-duck session of Congress will dig into next week, would cut the federal deficit by $503 billion through next September, said the Congressional Budget Office report. But the adjustments also would cause the economy to shrink by 0.5 percent next year.

    Read more: http://www.foxnews.com/politics/201...-hikes-would-lead-to-recession/#ixzz2BjMNwWOH
     
  2. InTheLight

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    Yep. And the onus is almost entirely on the Republicans in the House to come up with a plan. I'm confident that Boehner will blow it.
     
  3. LadyEagle

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    Now when you add in the obamacare tax effective Jan 1st next year, it's more than a double whammy.

    But this is what America voted for and this is what America got. And it's just the start of bad things to come. It would be hilarious if it weren't so sad.
     
  4. targus

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    Why is the onus on the Republicans?

    The Democrats are claiming a mandate - why don't they take the lead?

    You know - maybe come up with a budget?

    Stuff like that.
     
  5. InTheLight

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    Spending and tax bills originate in the House. The President will propose his own plan to avoid the fiscal cliff, yes, but ultimately it will be something that the House passes and the President signs.

    I heard Boehner already say that raising tax rates are out of the question. You know that Obama is going to propose tax hikes on the upper 2%. So I figure the Republicans will not budge on this issue and we'll drive off the fiscal cliff Thelma and Louise style. That is why I'm converting out all my investments to cash in December.
     
  6. Revmitchell

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  7. InTheLight

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