Shocker: CBO Admits to “Fiscal Cliff” Devastation
Yesterday’s big shocker was that regulations reduce output, today we were surprised to learn that massive tax increases and new taxes on the American people would lead to a deep recession.
Well, we did. You did. Everyone who’s not a tax-and-spend liberal did. But now the CBO knows. We are set to drive off the “fiscal” cliff in 4 months and 9 days, on January 1, 2013. The CBO has just figured this out. Better late than never, right?
The Hill reports what CBO has found:
“In its most dire warning yet about the fiscal cliff, the CBO said the economy would contract by 0.5 percent in calendar year 2013 if the George W. Bush-era tax rates expire and automatic spending cuts are implemented.
“Unemployment also would rise from 8.2 percent in 2012 to 9.1 percent next year, the office estimates.
“The contraction would be very severe in the first half of 2013. CBO sees the economy contracting by 2.9 percent in the first half — deeper than the 1.3 percent negative growth it had seen previously from the fiscal cliff.
“The gloomy picture of rising debt and weak economic growth marks CBO’s final major report before the November election. The report is a sharp contrast with the 1.1 percent in growth the CBO projected in January for 2013 and 0.5 percent growth it projected in May.
“CBO says the fiscal cliff will be worse than it had previously projected and that the ‘underlying strength’ of the economy is weaker.”
The “fiscal cliff,” or “taxmageddon,” needs to be stopped. The House of Representatives passed a bill that would avert the crisis, but more needs to be done. The Senate must act on this bill, but Senate Democrats would rather let the cliff come for job creators and small businesses instead of helping our economy.
Every penny of the fiscal cliff must be averted. Our economy is still struggling, and any tax on the American people will be counterproductive.