Tuesday, March 20, 2012

That January Deadline

An economist whispered: "I fear
That the time for can-kicking draws near;
For tax cuts on income
And payroll (and then some)
Expire the first of the year."

Alan Blinder must hope that Congress doesn't want to "shoot the messenger." The Princeton economist and former Vice Chairman of the Federal Reserve reminds them and us that, in January 2013, deadlines loom for:
  • the expiration of
  • the Bush tax cuts
  • the 2% payroll tax cuts
  • extended unemployment benefits
  • the imposition of automatic spending cuts from the failed deficit reduction super committee.
Taken together, these falling cans - if not adroitly kicked further - would take 3.5% from America's GDP at one stroke. Time for those Congressional punters to start warming up...

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