CBO: Taxmageddon would throw U.S. back into recession
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.
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.
Republicans want to extend the Bush tax cuts and reconfigure the spending cuts to protect the Pentagon. But Obama has threatened to veto any effort to amend current policies unless Republicans agree to let the Bush tax cuts expire for households earning over $250,000 a year.
Short story. Obama wants to cut Bush tax cuts, not decrease spending and find some way for the middle class to pay the bill (who else is going to pay the bill?) and the CBO say that's going to cause a new recession.
FredHayek wrote: Part of the austerity that is putting Europe back into a recession are increased taxes. Foreshadowing?
Cutting government will not promise a pain free recovery, but it's the only thing that will work in the long run. Raising taxes will not work. Raising taxes will not work- not in the short run- or in the long run.
The fact is that half the nation now lives a lazy entitlement life- and it's killing us. There will be some pain for the lazy - they may actually have to go back to work. But feeding the looters with a steady diet stolen from the productive is doing even more damage.
I'm all for a painful end to this nightmare- but it will only be painful for those who depend on government, a mistake they never should have gotten themselves into.
It will be far less painful for those who work for a living and support themselves. The government needs to be slashed- so free Americans spend less time working for the government, and more time working for themselves.
Wow...its going to be tough to tell my 94 year old mother that her lazy entitlement life is going to change and she will need to get a job. Im sure she will understand that she needs to work so people like Bear can keep all their money. There is no more common good in the USA....only common greed
Once again, false statements and distortions. The "taxageddon" was the plan agreed upon by the Dems and the GOP last year that would occur if the two parties failed to reach budget accord this year. The plan by President Obama and the Dems would let the unfunded tax cuts for the wealthiest taxpayers expire while keeping the tax cuts for the middle class. The Reps on the other hand want to further cut taxes for the wealthiest, while cutting Medicare and Medicaid for the poorest. The Ryan plan would increase the tax load on the poor and middle class while further cutting for the wealthy.
"Remember to always be yourself. Unless you can be batman. Then always be batman." Unknown
archer wrote: Bear can keep all their money. There is no more common good in the USA....only common greed
:chillpill: I have seen no one on this board support the elimination off all taxes. Just reducing some of the spending. I support expanding the income tax base. BTW eliminating the Bush tax cuts will increase taxes on lower income people. One reason it passed to reduce tax rates for the rich was a bipartisan agreement to decrease the number of people who have to pay income taxed.
Thomas Sowell: There are no solutions, just trade-offs.
Something the Dog Said wrote: Once again, false statements and distortions. The "taxageddon" was the plan agreed upon by the Dems and the GOP last year that would occur if the two parties failed to reach budget accord this year. The plan by President Obama and the Dems would let the unfunded tax cuts for the wealthiest taxpayers expire while keeping the tax cuts for the middle class. The Reps on the other hand want to further cut taxes for the wealthiest, while cutting Medicare and Medicaid for the poorest. The Ryan plan would increase the tax load on the poor and middle class while further cutting for the wealthy.
:thumbsup:
Yep.. Another bad day for lies and distortions, and another good day for truth...
Something the Dog Said wrote: Once again, false statements and distortions. The "taxageddon" was the plan agreed upon by the Dems and the GOP last year that would occur if the two parties failed to reach budget accord this year. The plan by President Obama and the Dems would let the unfunded tax cuts for the wealthiest taxpayers expire while keeping the tax cuts for the middle class. The Reps on the other hand want to further cut taxes for the wealthiest, while cutting Medicare and Medicaid for the poorest. The Ryan plan would increase the tax load on the poor and middle class while further cutting for the wealthy.
And you miss the whole point of the CBO report... we are going to have another recession if the Obama administration raises taxes and the right and left don't managed to really cut spending. Are you calling the CBO report "false statements and distortions?"
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.
That's false and distorted? What in the article was false and distorted?
:thumbsup:
