Skip to comments.CBO Report: Taxmageddon Means Unemployment of 9.1 Percent for 2013
Posted on 11/12/2012 10:36:51 AM PST by 92nina
A new CBO report released yesterday finds that Taxmageddons economic impact for 2013 would be disastrous for the economy.
The report projects that gross domestic product (GDP) would fall by 0.5 percent for 2013, a recession by economist standards. The loss in growth would then result in millions of lost jobs by raising unemployment from 7.9 for the current quarter to 9.1 for the fourth quarter of 2013.
In contrast, the CBO expects growth to reach 2.25 percent (not including an additional .75 percent in growth from extending payroll tax cut and long-term unemployment benefits) by the end of 2013 if Taxmageddon is diverted. Although the scenario gives an optimistic outlook for 2013, the CBOs projection becomes grim when looking at the long-term effects of not raising taxes. The CBO estimates that the publics share of federal debt would increase at a faster pace than GDP and would not be sustained indefinitely.
Assuming that keeping taxes at their current rates is not revenue neutral which may not be conclusive it would still be better economic policy to reduce the deficit through spending cuts rather than tax hikes. This way millions of small employers and families are not punished and are able to fully recover from the recession. In a survey conducted by the National Association of Business Economics, it was found that of the 236 economists surveyed, the top deficit reduction plan chosen was one that favored reducing the deficit through spending cuts rather than taxes.
Most experts are aware of the folly in raising taxes on families and small-employers, especially during a recovery. Thus, other alternatives need to be explored that can both reduce the deficit and do not harm taxpayers, e.g., spending cuts and laws that encourage economic growth.
Read more: http://atr.org/cbo-report-taxmageddon-means-unemployment-point-a7344#ixzz2C2D44QyO Follow us: @taxreformer on Twitter
Enough with the games. I am sick of them. No more half measures. Let the “Bush” tax cuts expire — ALL of them. Let the Middle Class feel the pain of their refusal to vote for cutting spending. You want a super-charged Welfare State? Fine, then pay the taxes that go with it. Not just taxes on “the rich” but taxes on the Middle Class too. And if there are huge spending cuts to go along with it, all the better. Cut everything. If that means the military gets cut, so be it.
Its time the Republicans stopped pussy-footing around and playing on Obama’s turf. The GOP leadership needs to come out and offer America a true choice. Either cut spending by about 25% across the board or a nice big middle class tax hike, which is what its going to take to close the deficit. If that means another “recession” (as if we left the last one), so be it.
Taxmageddon. Let her rip!
Not the "Bush tax cuts".
It's the "0bama Tax Hike".
And it's huge ...
Let the 0bama Tax Hike hit everybody.
Example #1 of where our money is going - and they wonder why Americans are angry:
All according to plan, Comrade. All. According. To. Plan.
Yet not angry enough to vote the bassturds out.
I am leaning toward going over the cliff. I do not trust the CBO as far as i can throw them...they have been on the wrong side of so much. How they can possibly project so much growth when there is not reason to believe it, makes me doubt their dire predictions. If they are saying its worthless gubbermint spending propping up the econ, that is just deferring the real reckoning.
If we go ahead and get it over with, then we can start again.
While idjits like Patty Murray are talking about paying their fair share, make the 47%-ers pay theirs, I don’t care if its $5/week. Bet they will be a lot more interested what happens to their money then....
Does that unemployment rate take into account the 11 million illegal aliens about to become citizens?
I agree. First taxing the rich is solely for class warfare. The taxes raised will be a drop in the bucket. Second, since the American people were so stupid as to re-elect Zero, they should suffer the consequences.
That 9.1% figure is a conservative estimate.
Congrats, Amerika. Get used to this brave new world.
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