Remember how the Democrats keep looking for ways to raise taxes on the most successful Americans?  And how the president has threatened top veto any tax legislation that does not raise taxes on the Job creators?

 Today the non-partisan Congressional Budget Office released its semi-annual report on the economy and as the saying goes, “it aint pretty.” According to the CBO the U.S. economy will slide into recession in 2013 if the combination of Taxmageddon and the automatic spending cuts — known as a sequestration are allowed to happen. 

The Congressional Budget Office Warns That Going Over The Fiscal Cliff “Will Lead To Economic Conditions In 2013 That Will Probably Be Considered A Recession …” “With those and other policy changes contained in current law, the deficit will shrink to an estimated $641 billion in fiscal year 2013 (or 4.0 percent of GDP), almost $500 billion less than the shortfall in 2012 (see Summary Table 1). Such fiscal tightening will lead to economic conditions in 2013 that will probably be considered a recession, with real GDP declining by 0.5 percent between the fourth quarter of 2012 and the fourth quarter of 2013 and the unemployment rate rising to about 9 percent in the second half of calendar year 2013.

The 2013 part of Taxmageddon

That’s only part of the story, the CBO report reflects an economy on the edge of the abyss, suffering from 3+ years of Obama’s “leadership”.

  • Unemployment Going Up  “The contraction of the economy will cause employment to fall and the unemployment rate to rise to 9.1 percent in the fourth quarter of 2013, CBO projects 
  • Ten years of Slow GDP Growth.  Growth from 2012 To 2022 Will Be Below The Average Rate Since 1950.“Potential GDP is projected to grow at an average annual rate of 2.4 percent between 2018 and 2022 and by an average of 2.2 percent for the entire 2012-2022 period (see Table 2-3). Those rates are substantially below the average rate since 1950 of 3.3 percent, largely because growth in the potential labor force (the labor force adjusted for variations caused by the business cycle) is expected to slow from its average annual rate since 1950 of 1.5 percent to 0.5 percent over the projection period, mostly because of the steady rise in baby boomers’ retirements. CBO also expects the growth of potential capital services (the flow of services available for production from the stock of capital goods) and the growth of potential total factor productivity to be slightly slower over the coming decade than they have been, on average, since 1950.”

This is the president who tells us his plans are working he just needs a little more time.  I shudder to think how bad off we will be should he get that time.