That’s the warning the Congressional Budget Office had for lawmakers on Tuesday after a looking at the consequences of automatic spending cuts set to take effect at the end of the year, and the expiring Bush tax cuts for ALL Americans. The CBO estimates that the economy will shrink by 1.3% in the first half of 2013 should lawmakers let the spending cuts takes effect and let the tax cuts for ALL Americans expire.
On the flip side, the deficit would shrink by about $607 billion. So Republicans would get what they want – which is deficit reduction – unfortunately the economy would tank as well, and millions more Americans would be out of a job. Democrats have proposed a solution to this problem – which is extending the Bush tax cuts for all Americans except for the Romney super-rich.
Unfortunately, Republicans would rather watch the economy go off the cliff than see their Romney super-rich political donors get hit with a tax increase. Even the Associated Press is asking the question “is the GOP trying to sabotage the economy to hurt Obama?” I think the answer is clearly, yes.