(The Hill) CBO: Recession in 2013 unless Congress acts on fiscal issues

Posted by Kendall Harmon

The nonpartisan Congressional Budget Office (CBO) said Tuesday that unless lawmakers act to prevent scheduled tax increases and spending cuts at the end of the year, a recession will likely result in early 2013.

Early next year income taxes are set to go up when the Bush-era tax rates expire. Automatic spending cuts totaling roughly $109 billion triggered by last August’s debt-ceiling deal are set to hit. Meanwhile, payments to physicians under Medicare will be slashed.

CBO projects that these and other elements of the so-called “fiscal cliff” will cause the economy to contract as demand dries up.

Read it all.

Filed under: * Economics, PoliticsEconomyTaxesThe U.S. GovernmentBudgetMedicareSocial SecurityThe National DeficitPolitics in GeneralHouse of RepresentativesOffice of the PresidentSenate

Posted May 23, 2012 at 6:50 am [Printer Friendly] [Print w/ comments]

1. Bart Hall (Kansas, USA) wrote:

The longer politicians attempt to delay the day of reckoning, the worse it will be. You cannot solve a problem of excess debt with even more borrowing. We’re in a depression and we might as well get on with it.

May 23, 9:44 am | [comment link]
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