CBO report warns against planned spending cuts

I offer this without comment:

A new government report said spending cuts scheduled to go into effect in 2013, coupled with the simultaneous expiration of Bush-era tax cuts, will shrink the U.S. economy and raise unemployment — contradicting the Republican claim that reducing the federal budget deficit will spur economic growth.

The Congressional Budget Office report, released on Tuesday, estimated that the policies slated to kick in on Jan. 1 would slash the deficit and shrink the national economy by 1.3 percent during the first half of next year, likely throwing the country over a “fiscal cliff” into another recession. …

The CBO report offers a stark contrast to a standard Republican argument. While Republicans frequently target President Barack Obama for the approximately $5 trillion increase in federal debt since he took office in 2009, this report suggested that rapid deficit reduction would cause short-term harm to the economic recovery.

Full article here: http://www.huffingtonpost.com/2012/05/22/cbo-report-deficit-reduction-recession_n_1537774.html

Fox News also produced a similar report: http://www.foxnews.com/politics/2012/05/22/cbo-says-us-likely-to-fall-fiscal-cliff-if-bush-era-tax-cuts-allowed-to-expire/

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