CBO: Spending cuts and tax increases slowing growth
February 5th, 2013
03:47 PM ET
1 year ago

CBO: Spending cuts and tax increases slowing growth

New York (CNNMoney) - The looming $85 billion in spending cuts coupled with new tax increases will slow economic growth considerably this year.

But the economy is likely to pick up steam in 2014, pushing unemployment down and setting the stage for a rise in interest rates and inflation.

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soundoff (7 Responses)
  1. Sniffit

    We've been telling everyone this for years. Austerity measures and obsessive deficit hawking, etc., is what exacerbated Greece's problems and threw them into a true tailspin. Moreover, this is just more confirmation that the GOP/Teatrolls are slowing the recovery ON PURPOSE because they believe the bad economy and continued suffering of the middle-class is a win-win situation for themselves.

    "Mission Accomplished," right Teatrolls?

    February 5, 2013 04:04 pm at 4:04 pm |
  2. Rudy NYC

    Had we sustained increased spending early on, then a larger spending decrease now would be less invasive. Meanwhile, tax reform could have been achieved incrementally, instead of the all or nothing budget hatchet we use now.

    February 5, 2013 04:31 pm at 4:31 pm |
  3. Tampa Tim

    Republican austerity programs gave us a Great Depression and GOP reckless spending and tax cuts under Bush nearly gave us a second depression.

    February 5, 2013 04:35 pm at 4:35 pm |
  4. Borderless

    Obama's sheep are once again dodging accountability. We are where we are because Obama a)had the wrong answers b)is the weakest president ever c)presides over the most corrupt administration ever d) bought every vote he got. Obama is the problem. We won't see a solution for at least four more years. Nice job, Obama sheep. Recovery averted.

    February 5, 2013 04:39 pm at 4:39 pm |
  5. Borderless

    Aside from the obvious fail on the economy, here are a few more things that Obama's sheep are having a hard time explaining: That Obama continues to allow drone assassinations on American citizens, that Obama has conveniently forgotten about Gitmo...and the Sandy victims...and the LGBT community...and his Jobs Counsel....

    Obama: Failing America since 2008.

    February 5, 2013 04:43 pm at 4:43 pm |
  6. Huh?

    @Sniffit

    "We've been telling everyone this for years. Austerity measures and obsessive deficit hawking, etc., is what exacerbated Greece's problems and threw them into a true tailspin. Moreover, this is just more confirmation that the GOP/Teatrolls are slowing the recovery ON PURPOSE because they believe the bad economy and continued suffering of the middle-class is a win-win situation for themselves.

    "Mission Accomplished," right Teatrolls?"
    ----------------------------------------------
    Wrong again.
    Greece is a basket case. Profligate social spending, bloated government payrolls and lax tax collection since before they joined the EU is what has done them in.
    Any talk of reduced government spending scares Liberals to death. It should. In order for the Liberal agenda to advance, more private sector funds will have to be confiscated (i.e., taxes).
    The U.S. economy is fragile. It has been kept on life support from the Federal Reserve since 2008. A plan for gradual reductions in the level of government spending, not the increase in government spending that Obama wants, are essential for the long term fiscal health of the United States. Otherwise, we are looking at a sovereign debt credit downgrade and that is when things can really get nasty.

    February 5, 2013 04:50 pm at 4:50 pm |
  7. sonny chapman

    That damned AND in the statement just blows the Repub. Theology to pieces. It's was just so easy to say "Taxes are Job Killers". John Boehner must repeat that mantra in his sleep.

    February 5, 2013 05:07 pm at 5:07 pm |