CBO: Deep recession coming if Bush tax cuts expire

The CBO says we are in big trouble if President Obama and the Democrats have their way and let the Bush tax cuts expire at the end of this year.

From The Hill:

The non-partisan Congressional Budget Office on Wednesday warned the economy will enter a recession next year if the country goes over the so-called fiscal cliff.

In its most dire warning yet about the fiscal cliff yet, the CBO said the economy would contract by 0.5 percent in calendar year 2013 if the Bush-era tax rates expire and automatic spending cuts are implemented.

Unemployment also would rise from 8.2 percent in 2012 to 9.1 percent next year, it estimates.

The contraction would be very severe in the first half of 2013. CBO sees the economy contracting by 2.9 percent in the first half-- deeper than the 1.3 percent negative growth it had seen previously from the fiscal cliff.

Mitt Romney and Paul Ryan favor making these tax cuts permanent.

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