Sequester Certainty
01/30/2013 | | continuing resolution, GDP reduction, Graphs and Laughs, Graphsandlaughs, sequester, sequesteration
Given Republican unwillingness to raise taxes and Democratic insistence on it, the delayed automatic $110 billion sequester will kick-in on March 1st. This will reduce GDP growth by 0.75% and guarantees a weak first half of ’13 as the economy is already painfully digesting the two percentage-point Social Security tax hike that began 1/1/13. The good news, the Congress will pass another continuing resolution keeping the government operating through 9/30/13.