The Last Sip!

Not to discourage everyone on Memorial weekend...but just something to Think before our next vote!

Congressional Budget Office Warns of Recession in 2013

By John Grgurich, The Motley Fool 

The nonpartisan Congressional Budget Office is warning that if $607 billion in tax increases and spending cuts all hit as scheduled -- roughly the beginning of next year -- the U.S. will likely go into recession in 2013.

This is the "fiscal cliff" you may have heard about. But while economists, the Federal Reserve, and members of Congress have been warning about its approach for some time, the CBO's report is the first detailed analysis of its potential effects.












A Recipe for Recession

All of the following are scheduled to occur around the turn of the year, and together make up the so-called fiscal cliff:

1. The expiration of the Bush-era tax cuts, including a 3% to 5% upward income-tax adjustment and a 5% increase in the capital-gains tax.
2. A return of the alternative minimum tax, which could affect those with yearly incomes as low as $30,000.
3. A 2% payroll tax increase, which had temporarily been cut for 2011 and 2012.
4. $1.2 trillion in automatic budget cuts, because the president and Congress failed to pass a deficit-cutting package in the wake of last summer's debt-ceiling debate.

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