'Taxmageddon': Not so hyperbolic | Business Roundtable

Contact

  • General Inquiries
    202.872.1260
    info@brt.org
  • Mailing Address
    300 New Jersey Avenue, NW
    Suite 800
    Washington, D.C. 20001
  • Media Contact
    Betsy Andres Stewart
    Senior Director
    bstewart@brt.org

Membership Contact
LeAnne Redick Wilson
Senior Vice President
​lwilson@brt.org

    

What is Business Roundtable

Business Roundtable (BRT) is an association of chief executive officers of leading U.S. companies working to promote sound public policy and a thriving U.S. economy.

'Taxmageddon': Not so hyperbolic

May 23, 2012

The potential year-end expiration of existing tax rates, exemptions and incentives, combined with new federal spending required by law, has been dubbed "Taxmageddon." Hyperbole?

From The Washington Post, "CBO: Taxmageddon would throw U.S. back into recession":

 

Tax hikes and spending cuts set to take effect in January would suck $607 billion out of the economy next year, plunging the nation at least briefly back into recession, the nonpartisan Congressional Budget Office said Tuesday.

Unless lawmakers act, the economy is likely to contract in the first half of 2013 at an annualized rate of 1.3 percent, the CBO said, before returning to 2.3 percent growth later in the year.

 

Canceling those tax and spending policies would protect the recovery in the short run and encourage more vibrant growth, around 4.4 percent, in 2013, the CBO said.

At the same time, America does have a serious deficit and debt problem. BRT's view is that U.S. fiscal straits cannot be solved without policies that encourage economic growth. In any case, not Taxmaggedon. More like a fiscal cliff over which America will plunge.

 

Author

Senior Communications Advisor
Business Roundtable

More On The Issue

Connect with BRT

Latest Multimedia

Video: Why Reading Matters, & What to Do About It | SAS CEO Dr. Jim Goodnight

CEO Economic Outlook

Q4 2016 Survey

The CEO Economic Outlook Survey provides a forward-looking view of the economy by Business Roundtable member CEOs. The index is a composite of CEO projections for sales and plans for capital spending and hiring over the next six months.

Continue