Taxmageddon: Congress Needs to Act Now
A few weeks ago, around Tax Day, Heritage started warning of Taxmageddon—a one-year, $494 billion tax hike that slams the economy on January 1, 2013, unless Congress and President Obama act to stop it.
At that time, Taxmageddon was merely a blip on Washington’s radar, because the conventional wisdom was that Congress and the President would deal with it in the lame duck period after the November election. We argued then that this was a bad idea.
The uncertainty plaguing the economy today because of Taxmageddon lingering in the near future is slowing economic growth right now, and as today’s jobs report reminds us, the economy remains very weak, with unemployment stuck above 8 percent. And there is no telling what could happen in that lame duck session, which could lead to the unsettling proposition that Taxmageddon would indeed occur.