Austere "fiscal cliff" tax increases and federal spending cuts set for the end of the year would send the economy back into recession and cause a spike in the jobless rate to 9.1 percent by next fall, congressional budget analysts said Thursday. The tax and spending changes, which a lame-duck session of Congress will dig into next week, would cut the federal deficit by $503 billion through next September, said the Congressional Budget Office report. But the adjustments also would cause the economy to shrink by 0.5 percent next year. The report, updating an analysis from last May, comes as a newly re-elected President Obama and Congress seek ways to avert or at least ease possible damage from the scheduled changes. All sides are promising cooperation, but many difficult decisions await and the politics of raising tax revenue and cutting federal benefits programs is exceedingly tricky. The new study estimates that the nation's gross domestic product would grow by 2.2 percent next year if...
AEI Research Fellow Alex Brill on the potential economic consequences of the fiscal cliff negotiations.
"I have seen Americans making great and sincere sacrifices for the key common good and a hundred times I have noticed that, when needs be, they almost always gave ea...
Democrats are going all-in in a fiscal game of chicken, saying they'll let everyone's income taxes rise on Jan. 1 and slash defense spending amid 8-plus percent unem...
Shadow hanging over US economy?
Slowly and quietly, the U.S. Congress may be arriving at a consensus on how to avoid falling off the "fiscal cliff" on December 31 - by simply putting off its own de...
FBN's Rich Edson on Washington's position on fixing the fiscal drag.
FBN’s Gerri Willis on the potential tax hikes Americans are facing.
Mike Emanuel reports from Washington, D.C.
Should taxpayers be worried?
Where are negotiations headed?
WL Ross & Co. Chairman Wilbur Ross on the fiscal cliff negotiations the debt ceiling and the potential growth of U.S. natural gas.
Economic Policy Institute’s Christian Dorsey on why lawmakers should focus more on boosting the economy’s recovery.
The "fiscal cliff" drama that ended at the midnight hour on the first day of the year was essentially a knock-down drag-out fight over how to close the budget defici...
The so-called "fiscal cliff" refers to an automatic $560 billion in tax increases and spending cuts that would go into effect, beginning in January 2013, to reduce t...
Russell Investments chief economist Mike Deuker discusses the effect of sequestration on the markets.
FBN’s Liz MacDonald on the impact of the fiscal cliff on retailers and customers.
Congressman Michael Burgess (R-TX) talks to Alan about Obamacare, a flat tax and the Fiscal Cliff .
Washington focuses in on the expiration of the Bush tax cuts and a new round of mandatory spending cuts that will kick in January 1st.
Tax Foundation President Scott Hodge on the impact of the fiscal cliff deal and the increase in federal taxes.