By James Politi Congress is unlikely to reach an agreement to increase the US debt ceiling during the "fiscal cliff" negotiations at the end of year, raising the prospect of a fresh perilous brush with default in early 2013. Read more...
An American Banker article yesterday focused on the financial sector’s concerns about the impending fiscal cliff – a combination of draconian spending cuts and expiring taxes. If Congress is unable to reach a bipartisan deal by January 1, 2013, millions of American businesses and citizens will see their taxes increase, pushing the U.S. economy back into recession [...]
By Victoria Finkle WASHINGTON — As the country peers over the edge of the impending fiscal cliff, the banking industry may be haunted by the words of Butch Cassidy: "The fall will probably kill you." Should lawmakers fail to make a deal postponing the steep budget cuts and tax hikes that are slated to go into [...]
Failure to act on the looming year-end tax increases would yield the largest tax increases in American history coupled with draconian, ill-designed, across-the-board discretionary spending cuts. Economists from across the political spectrum warn that such tax increases and spending cuts would have a devastating effect on a still sputtering U.S. economy, quite possibly returning it to recession."