The taxman cometh: higher taxes in 2011 will retard economic growth
By Palash R. Ghosh
August 23, 2010
Prospects for higher taxes in 2011 and beyond will retard the pace of economic recovery in the U.S.
Milton Ezrati, senior economist and market strategist, said that the tax increases both planned (and threatened) by the current administration over the next few years will likely cut GDP growth.
Consider the plethora of tax hikes on the horizon:
The tax cuts initiated by George W. Bush in 2001 and 2003 are scheduled to expire at the end of this year. The President and Congress will probably extend the cuts for all but the two top brackets of wealthier Americans, thereby letting the tax brackets rise from their present levels of 35 percent and 33 percent, respectively, to 39.6 percent and 36 percent.