Economic Insights – May 2012

For three years, the market has suffered from a severe case of economic hypochondria.  Headline after headline proclaimed that this time, for sure, the recession would return.  Now, some doomsayers are pointing ahead to a “fiscal cliff” in 2013.  The supposed cliff is a combination of possible policy changes all happening next year.  These include:
  • The sunset of the “Bush tax cuts” on regular income, dividends, capital gains, and estates.
  • The end of the payroll tax cut.
  • The planned cuts to federal spending.
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