CBO Gives Most Dire Warning Yet About Taxmageddon

The CBO expanded its forecast for "Taxmageddon", a doomsday scenario that could take place during Q1 2013 if the Bush tax cuts are allowed to expire AND automatic spending cuts are triggered if Congress can't agree on ways to cut the deficit. The office now sees the economy contracting by nearly 3% in the first half of 2013 and the U-3 unemployment rate rising to 9.1%, which would likely mean the official U-6 rate rising to 18% and the true U-6 rate rising to 20%. Job losses would total more than 2 million. With 4 months left of the clock and the entire House up for election in 3--not to mention a presidential election--, there's no indication of either party making concessions on either the tax cuts or the spending cuts.