The Congressional Budget Office (CBO), and The New York Times (NYT) are hitting President Obama and his economics plan with a one-two punch. Both have released less than optimistic reports on
Recession special at Gray’s Papaya shop (Photo credit: Ed Yourdon)
the President’s ongoing economics policies and plans.
The CBO cuts to the chase saying that unless the Congress and the President take immediate action, America is due for a recession beginning in 2013. Taxmageddon is the $494 billion tax increase beginning January 1, 2013. The taxmageddon is a combination of several expiring tax policies and the start of major tax increases of Patient Protection and Affordable Care Act (PPACA).
Not only are the tax issues going to be crippling the economy. The CBO also report that inaction on the part of the Congress and the President, there will be an additional 1.6 million workers out of work, adding to the current 8.3% unemployment rate. The additional displaced workers are added to those 12.8 million workers, who the Bureau of Labor Statistics currently report, are wanting to work, actively seeking work, and yet are unable to find a job.
Lets also remember that the Senate has failed for the past 1, 210 days to pass a budget, instead opting to bury their heads in the sand with the passage of temporary stopgap funding bills.
Taxes will hit everyone, and the hardest hit in the current economy according to the NYT, are Americans at the older and younger ends of the age spectrum. The NYT article reports that those nearing retirement, ages 55 to 64 have seen their incomes drop 9.7% since Obama took office in 2009. Those just entering the workforce, ages 25 to 34 have seen their income, when they do find jobs, decline nearly 9%.
President Obama, Senate Majority Leader Harry Reid (D-Nev) and the rest of the Congress need to realize that talk about this issue is cheap and the American Voter is looking for action to resolve these pending issues.
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