Arab Today, arab today us could fall into recession if budget deal not reached soon
Last Updated : GMT 02:34:15
Arab Today, arab today
Arab Today, arab today

US could fall into recession if budget deal not reached soon

Arab Today, arab today

Arab Today, arab today US could fall into recession if budget deal not reached soon

Washington - XINHUA

The US economy could slip into recession if Congress does not agree on a budget deal with the White House to avoid the \"fiscal cliff,\" U.S. experts warned Thursday. A deal may yet come through, but at the moment the two sides are unable to compromise on taxes for upper income earners -- President Barack Obama argues they must pay their fair share while Republicans contend those in upper tax brackets drive the economy and taxing them will stunt growth and jobs creation. Should the two sides fail to hammer out a deal by year\'s end, a spate of tax hikes are set to kick in that will cause many Americans to feel the squeeze in their paychecks, leading to a drop in consumer spending and another recession, experts said. Barry Bosworth, senior fellow at the Brookings Institution and a former presidential advisor, said most of the models conclude that a large tax increase would trigger a relatively modest recession. The Congressional Budget Office projects that the unemployment rate would rise to 9 percent -- it was 7.9 percent in October -- and the decline in GDP over 4 quarters would be about 0.5 percent, Bosworth noted. \"The full tax increase would be very large and the full budgetary effect is about 500 billion (U.S. dollars),\" he said. \"The effects would be quite immediate in the first quarter of 2013, and reach a peak in the last half of the year.\" Consumers will begin to react immediately in the first quarter, although much of that would be reversed in future quarters if Congress hammers out a deal in the first part of 2013 that extends the tax cuts and eliminates spending cuts, Bosworth said. \"Even if they reach a deal, it will include a substantial amount of fiscal restraint in 2013 and 2014, so U.S. growth is likely to be low regardless of what they do,\" he said. Andy Busch, global currency and public policy strategist at BMO Capital Markets, said negotiations are entering into a critical time frame. While markets rallied significantly last week, they were shaken out of that mindset Tuesday when U.S. Senate Majority leader Harry Reid said he was disappointed over the pace of the negotiations and added there had been little progress, Busch said. Democrats believe that winning the White House earlier this month has empowered them to raise taxes and cut deductions on the top two brackets while leaving entitlement programs untouched. By contrast, Republicans believe retaining the House majority has empowered them to pass all of the sun setting tax provisions and then have a larger deal on cutting spending, reducing entitlements and fixing the tax code to promote growth, Busch said

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us could fall into recession if budget deal not reached soon Arab Today, arab today us could fall into recession if budget deal not reached soon

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday