Payroll tax deadlock could hobble economy
December 20th, 2011
02:33 PM ET
3 years ago

Payroll tax deadlock could hobble economy

NEW YORK (CNNMoney) - If Congress fails to pass an extension of the payroll tax holiday, it would put a serious dent into economic growth in 2012 and could even help tip the U.S. back into a recession, according to economists.

Economists surveyed by CNNMoney on Tuesday said that gross domestic product, the broadest measure of the nation's economic health, could be about 0.4 percentage points lower in the first quarter if Congress doesn't extend the measure which lowered payroll taxes this past year.

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Filed under: Congress • House • Senate • Taxes
soundoff (29 Responses)
  1. Wire Palladin, S. F.

    Truth blah blah blah – Are you serious? You are joking right?

    December 20, 2011 03:49 pm at 3:49 pm |
  2. Rudy NYC

    Scott O' Canada wrote:

    I'm as fiscal conservative as you'll find anywhere. But the only terrorists you have to worry about at the moment is the current incarnation of the Republican Party. If I didn't know any better (and I quite often don't), I would assert that they collectively have an agenda to bring American to the abyss. Seriously.
    ---------------–
    That raises an interesting question. Financial derivatives and betting against loans and mortgates is what contributed to the economic mess, and some people profited handsomely from it as a result of those transactions. So. How much do you want to *bet* that someone has made a huge bet that would pay of immensely if the American economy did crash?

    December 20, 2011 03:54 pm at 3:54 pm |
  3. GI Joe

    Why did we not have to cut benefits to the wealthy when we gave them 2 (TWO) tax cuts?

    Why is it we haven't had to pay for the 2 (TWO) wars with increased taxes?

    WHY?

    December 20, 2011 03:58 pm at 3:58 pm |
  4. The Real Tom Paine

    and the GOP goes OOOOOOOHHHHHHHH with delight!

    December 20, 2011 04:06 pm at 4:06 pm |
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