Damian Paletta and Sara Murray reported in today’s Wall Street Journal that, “The U.S. economy likely would slide into a ‘significant recession’ next year if Congress doesn’t avert tax increases and spending cuts set to begin in January, the Congressional Budget Office said Wednesday.”
This Wall Street Journal video explains more:
See also this interactive graphic from the CBO (click on graph to expand):
Whether the House and Senate are able to resolve the Farm Bill before the end of September, or if the legislation gets pushed into consideration after the election, issues related to budget sequestration and the “fiscal cliff” could become increasingly important.
Ramsey Cox reported on Tuesday at The Hill’s Floor Action Blog that, “Sen. Kent Conrad (D-N.D.) told constituents Monday that he and a bipartisan group of seven senators are still working on a plan to greatly reduce the national deficit and avoid the looming ‘fiscal cliff.’
“‘A lot of important behind-the-scenes work is being done now on the key elements of a comprehensive, balanced and bipartisan long-term fiscal plan,’ Conrad said. ‘While our small group consists of four Democrats and four Republicans, upwards of 40-plus Republican and Democratic Senators are supporting and encouraging our efforts to reach a balanced agreement that includes entitlement changes, tax reform and additional spending cuts.’”
Yesterday’s update added that, “On Monday, [Sen. Conrad] said that the pressure to avoid the fiscal cliff could help prompt lawmakers to take action to avoid the situation by passing a comprehensive plan.”