According to The Washington Post, across the U.S. economy, anxiety is rising about the potential for widespread disruptions after the November elections. That’s when a lame-duck Congress will have barely two months to resolve a standoff over taxes and spending. Mark Zandi of Moody’s Analytics predicts the lame-duck Congress will make a deal to rescind half the spending cuts and raise taxes for the wealthiest 2 or 3 percent of households — but leave everyone else alone.
The impending upheaval is a result of the George W. Bush-era tax rates that are scheduled to expire in December, along with a temporary payroll-tax holiday sought by President Obama. Last summer, Congress paired a debt-limit increase with 1.2-trillion dollars in across-the-board spending cuts over the next decade that almost no one wants to see happen.