PETER MORICI: ‘A SECOND GREAT DEPRESSION WOULD GRIP THE NATION’
November 14th, 2012
Morici: Tax Hikes on Rich Won’t Solve Fiscal Woes, Depression Possible
The Obama administration’s plans to hike taxes on the wealthiest 2 percent of the population will do little to solve the country’s fiscal imbalances and do nothing to avoid economic depression that looms large for the economy, said Peter Morici, a professor at the Robert H. Smith School of Business at the University of Maryland.
One solution championed by congressional Democrats and the White House involves allowing tax cuts to expire for the wealthiest 2 percent of Americans to help narrow deficits.
“To avert calamity, President Obama and House Republicans likely will compromise to raise taxes on high-income Americans by $100 billion to $150 billion, curb spending an equal amount and renew the Bush tax cuts for families earning less than $250,000,” Morici wrote.
“This will hardly be enough to right the nation’s shaky finances.”
Failure to address deep-rooted fiscal imbalances could seriously damage the U.S. economy.
“A second Great Depression would grip the nation,” Morici wrote.