Experts Forecast the Cost of Failure to Compromise
By NELSON D. SCHWARTZ
Published: December 30, 2012
Even if President Obama and Republicans in Congress can reach a last-minute compromise that averts some tax increases before Monday’s midnight deadline, experts still foresee a significant drag on the economy in the first half of 2013 from the fiscal impasse in Washington.
David Goldman/Associated Press
Shoppers in Atlanta. The confidence of consumers has eroded in the absence of a deal to avert a harsh budget package on Jan. 1.
While negotiators in the capital focus on keeping Bush-era tax rates in place for all but the wealthiest Americans, other tax increases are expected to go into effect regardless of what happens in the coming days. For example, a two percentage point jump in payroll taxes for Social Security is all but certain after Jan. 1, a change that will equal an additional $2,000 from the paycheck of a worker earning $100,000 a year. Continue reading “Experts Forecast the Cost of Failure to Compromise”