The White House economic team releases a new study suggesting overall GDP would take a substantial hit in 2013 if middle class tax cuts expire on December 31st as part of the ''fiscal cliff'' of pending tax hikes and spending cuts. (November 26, 2012)
The council of economic advisors together with the National Economic Council. I consider what would happen if the bush era tax cuts. After the middle class are not extended we calculated that this would reduce. Consumption. By about 200 billion dollars. And the typical middle class family. Which face about a 2200 dollars. Tax increase. To put that in some perspective. That would reduce the growth of consumption by one point seven percentage points. And -- one point four percentage points off the GDP growth. Next year. When you're sixteen trillion dollars in debt. They only pledge we should be making the Chad there is to avoid becoming priests and Republicans. Republicans should -- revenue on the table. With back. Kind of compromise. Tone coming from where's where's the president. Again. Some of the comments you mentioned. Are welcome and today. Represent what we hope this day. The difference in tone and approach. To these problems and recognition that it can't balance. Approach to deficit reduction. Is the right approach is the one that's most beneficial for our economy. -- sixteen trillion dollars in debt. They only pledge we should be making.