It appears we’ve begun a new news cycle that is, essentially, “All Fiscal Cliff, All the Time” and, as shown in the links post from a short time ago, this website is no exception. All the attention is understandable since, in the scheme of things, the story of a dysfunctional government trying to avoid a new recession of its own making is kind of important. Perhaps the only positive in all of this is that the fiscal cliff coverage is a vast improvement from the many months of election coverage prior to November.
Anyway, here’s the latest fiscal cliff graphic via this story at The Economist:
One thing seems certain in all of this – payroll taxes are going up in January. How big an impact will that have? It’s pretty big as shown above and there’s the same sort of break down in this handy table provided by Macroadvisors where the “Expiration of the Payroll Tax Holiday” is seen subtracting about 0.6 percentage points from real economic growth next year, slightly less than shown above.
