Government Information

Earl Gregg Swem Library

The “Fiscal Cliff”: Macroeconomic Consequences of Tax Increases and Spending Cuts

Categories: Business/Economics,Financial Crisis/Markets,Govt Finance

http://www.fas.org/sgp/crs/misc/R42700.pdf

If tax increases and spending cuts are allowed to go into effect in 2013, severe increases in unemployment and decreases in economic growth are projected.  This report reviews legislative proposals and short-run effects of the so-called “fiscal cliff.”    From the Congressional Research Service, posted by the Federation of American Scientists