Saturday, December 29, 2012

Fiscal Cliff: $536 Billion Tax Hikes Over the Edge; Recession Risk

At IBD, "Fiscal Cliff: $536 Billion In Tax Hikes Over the Edge":
Even for those who aren't afraid of heights, peering over the fiscal cliff may be dizzying. The plunge in after-tax income that would occur in a worst-case scenario likely would put the economy back in a deep recession.

Yet a peek over the edge now seems unavoidable, at least according to Senate Majority Leader Harry Reid:

"It looks like that's where we're headed," Reid said in a Senate floor speech on Thursday.

So here's what the view looks like. The fiscal cliff is composed of $536 billion in 2013 tax hikes, the Tax Policy Center says.

The biggest tax hikes would be an end to President Bush's 2001 and 2003 income and investment tax cuts and President Obama's 2 percentage point payroll tax cut.

But that's just the beginning. Nearly 90% of households would face an average tax increase close to $3,500.

The fiscal cliff also would trigger roughly $115 billion in automatic spending cuts.
More at the link.

And at Instapundit, "COMMENT OF THE DAY":
“For ten years we have been told that the Bush tax cuts applied mostly to the rich. Now it is imperative that we extend them further or the middle class is going to take a big hit.”
Progressives suck.