Ben Bernanke Warns Congress on ‘Taxmageddon’
Federal Reserve Chairman Ben Bernanke warned Capitol Hill today that any modest gains the economy is making could all be lost if Congress doesn’t take action to avert the so-called “taxmageddon” by the end of the year.
“As is well known, U.S. fiscal policies are on an unsustainable path,” Bernanke told the Senate Banking Committee. “The most effective way that the Congress could help to support the economy right now would be to work to address the nation’s fiscal challenges in a way that takes into account both the need for long-run sustainability and the fragility of the recovery.”
Congress is facing a year-end “fiscal cliff,” the intersection of several tax provisions — notably, the expiration of Bush-era tax cuts, $1.2 trillion in automatic spending cuts because of the sequester and expiring payroll tax breaks, which, if not addressed, could cost American taxpayers $310 billion in tax increases next year.
“Recovery could be endangered by the confluence of tax increases and spending reductions that will take effect early next year if no legislative action is taken,” Bernanke said.
https://abcnews.go.com/blogs/politics/2012/07/ben-bernanke-warns-congress-on-taxmageddon/